Investing.com - The euro rose to session highs against the dollar on Thursday after European Central Bank President Mario Draghi played down prospects for negative deposit rates in the euro zone.
EUR/USD rose 0.19% to 1.3464, up from session lows of 1.3399 during European afternoon trade.
The pair was likely to find support at 1.3389, the low of November 13 and resistance at 1.3500.
Speaking in Germany, Draghi downplayed speculation that the ECB was actively considering whether to cut deposit rates into negative territory.
Concerns over mounting deflationary pressures in the euro zone have been escalating since the ECB cut rates to a record low 0.25% earlier this month, after data showed that the annual rate of euro zone inflation slowed to a four year low in October.
The euro’s gains were held in check after data on Thursday showed that private sector activity in the euro zone lost momentum in November.
The euro zone’s manufacturing purchasing managers’ index ticked up to 51.5 in November from a final reading of 51.3 in October.
However, the euro areas services PMI declined to 50.9 this month from 51.6 in October, disappointing expectations for an increase to 51.9.
Separate reports showed that manufacturing activity in Germany rose to a 29 month peak this month, while service sector activity rose to a four month high, but activity in the French private sector contracted for the first time in three months in November.
Demand for the dollar continued to be underpinned after the minutes of the Federal Reserve’s October meeting indicated that policymakers could start scaling back the USD85 billion-a-month asset purchase program in the “coming months” if the economy continues to improve as expected.
The euro was trading close to four-year highs against the broadly weaker yen, with EUR/JPY jumping 1% to 135.78, just below the 135.93 high struck on Wednesday.
Elsewhere, the dollar was at four-month highs against the yen, with USD/JPY up 0.80% to 100.83, the highest since July 10.
EUR/USD rose 0.19% to 1.3464, up from session lows of 1.3399 during European afternoon trade.
The pair was likely to find support at 1.3389, the low of November 13 and resistance at 1.3500.
Speaking in Germany, Draghi downplayed speculation that the ECB was actively considering whether to cut deposit rates into negative territory.
Concerns over mounting deflationary pressures in the euro zone have been escalating since the ECB cut rates to a record low 0.25% earlier this month, after data showed that the annual rate of euro zone inflation slowed to a four year low in October.
The euro’s gains were held in check after data on Thursday showed that private sector activity in the euro zone lost momentum in November.
The euro zone’s manufacturing purchasing managers’ index ticked up to 51.5 in November from a final reading of 51.3 in October.
However, the euro areas services PMI declined to 50.9 this month from 51.6 in October, disappointing expectations for an increase to 51.9.
Separate reports showed that manufacturing activity in Germany rose to a 29 month peak this month, while service sector activity rose to a four month high, but activity in the French private sector contracted for the first time in three months in November.
Demand for the dollar continued to be underpinned after the minutes of the Federal Reserve’s October meeting indicated that policymakers could start scaling back the USD85 billion-a-month asset purchase program in the “coming months” if the economy continues to improve as expected.
The euro was trading close to four-year highs against the broadly weaker yen, with EUR/JPY jumping 1% to 135.78, just below the 135.93 high struck on Wednesday.
Elsewhere, the dollar was at four-month highs against the yen, with USD/JPY up 0.80% to 100.83, the highest since July 10.