Investing.com - The euro trimmed gains against the U.S. dollar on Thursday, after European Central Bank President Mario Draghi unveiled details of the bank's bond purchasing program, aimed at easing the debt crisis in the region.
EUR/USD pulled back from 1.2650, the pair’s highest since July 2, to hit 1.2600 during European afternoon trade, 0.01% higher on the day.
The pair was likely to find support at 1.2464, the low of August 28 and resistance at 1.2650, the session high and a two-month high.
Speaking at the central bank’s post-policy meeting press conference, Draghi outlined a new bond purchasing program, dubbed Outright Monetary Transactions, which he said will provide "a fully effective backstop" against market volatility.
Draghi said "strict and effective conditionality” was an essential element of the plan, under which the ECB would buy unlimited amounts of bonds of up to three years in maturity.
The ECB will decide on when bond purchases will start and how long they will continue after a “full assessment”.
The ECB also slashed its forecast for economic growth for this year, to a contraction of 0.6%, from a previous forecast for a 0.2% contraction.
The ECB maintained the benchmark interest rate at a record-low 0.75%, in line with market expectations, at its policy meeting earlier in the day.
The euro dipped against the pound, with EUR/GBP inching down 0.04% to 0.7920, but rose to a two-month high against the yen, with EUR/JPY rising 0.61% to 99.37.
In the U.S., a report showed that U.S. ADP non-farm payrolls rose by 201,000 in August, beating expectations for a 140,000 increase and following a rise of 173,000 the previous month.
Meanwhile, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell to 365,000 from 377,000 compared to expectations for a decline to 370,000.
The previous week’s figure was revised up to 377,000 from a previously reported 374,000.
EUR/USD pulled back from 1.2650, the pair’s highest since July 2, to hit 1.2600 during European afternoon trade, 0.01% higher on the day.
The pair was likely to find support at 1.2464, the low of August 28 and resistance at 1.2650, the session high and a two-month high.
Speaking at the central bank’s post-policy meeting press conference, Draghi outlined a new bond purchasing program, dubbed Outright Monetary Transactions, which he said will provide "a fully effective backstop" against market volatility.
Draghi said "strict and effective conditionality” was an essential element of the plan, under which the ECB would buy unlimited amounts of bonds of up to three years in maturity.
The ECB will decide on when bond purchases will start and how long they will continue after a “full assessment”.
The ECB also slashed its forecast for economic growth for this year, to a contraction of 0.6%, from a previous forecast for a 0.2% contraction.
The ECB maintained the benchmark interest rate at a record-low 0.75%, in line with market expectations, at its policy meeting earlier in the day.
The euro dipped against the pound, with EUR/GBP inching down 0.04% to 0.7920, but rose to a two-month high against the yen, with EUR/JPY rising 0.61% to 99.37.
In the U.S., a report showed that U.S. ADP non-farm payrolls rose by 201,000 in August, beating expectations for a 140,000 increase and following a rise of 173,000 the previous month.
Meanwhile, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell to 365,000 from 377,000 compared to expectations for a decline to 370,000.
The previous week’s figure was revised up to 377,000 from a previously reported 374,000.