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Forex - EUR/USD remains lower after ECB rate decision

Published 10/22/2015, 08:11 AM
© Reuters.  Euro holds onto losses vs. dollar, eyes on Draghi comments
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Investing.com - The euro remained lower against the U.S. dollar on Thursday, after the European Central Bank left interest rates unchanged and investors awaited comments by ECB President Mario Draghi.

EUR/USD hit 1.1303 during European afternoon trade, the pair's lowest since October 18; the pair subsequently consolidated at 1.1315, shedding 0.21%.

The pair was likely to find support at 1.1265, the low of October 2 and resistance at 1.1397, the high of October 16.

The euro showed little reaction after the ECB said it was maintaining its benchmark interest rate at a record-low 0.05%, in line with market expectations.

ECB President Mario Draghi was set to comment on the decision at a press conference later in the day.

Draghi could hint at the possibility of further monetary stimulus with inflation in the euro area still sluggish and as fears linger about slowing global growth led by China.

Market participants were also eyeing the weekly report on U.S. jobless claims due later in the day after a batch of mixed U.S. economic reports fuelled fresh uncertainty over the timing of a U.S. rate hike.

The euro was lower against the pound, with EUR/GBP dropping 0.57% to 0.7316.

Earlier Thursday, the U.K. Office for National Statistics reported on Thursday that retail sales surged by 1.9% last month, blowing past forecasts for a gain of 0.3%.

Year-on-year, retail sales increased by 6.5% in September, above expectations for a 4.8% gain.

Core retail sales, which exclude automobile sales, jumped 1.7% last month, easily surpassing forecasts for a 0.3% increase.

The data came a day after Bank of England Governor Mark Carney warned of the potential pitfalls of being a member of the European Union, as the country prepares to vote on membership of the single market.

The comments came amid mounting concerns that the referendum promised by David Cameron by the end of 2017 may actually lead to the U.K.'s leaving the EU.

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