Investing.com - The euro rose to session highs against the dollar on Thursday after the European Central Bank kept monetary policy on hold and outlined details of its new bond purchasing program, aimed at shoring up inflation.
EUR/USD was last up 0.44% to 1.2675, recovering from lows of 1.2614.
The pair was likely to find support at 1.2570, Tuesday’s low and a two-year trough and resistance at around 1.2700.
The euro found support after the ECB held back from announcing additional easing measures in spite of growing concerns over the threat of deflation in the euro area.
Data earlier this week showed that the annual rate of euro area inflation slumped to a five year low of 0.3% in September.
ECB President Mario Draghi reiterated that the bank is unanimous in its commitment to using additional unconventional measures if necessary.
He said recent data confirmed that economic growth in the currency bloc is losing momentum and added that the outlook for inflation remained subdued.
The ECB head also outlined details of its new asset purchase program and covered bonds, which it announced last month.
Draghi said the covered bond operation will start in October and the asset purchase program will begin in the fourth quarter of this year. The programs are to run for two years and will substantially increase the ECB’s balance sheet, he said.
The programs will also help get inflation back to the ECB’s long term target of 2%, Draghi said.
The ECB held its benchmark interest rate at a record-low 0.05%, its marginal lending rate at 0.30% and left its deposit facility rate unchanged at -0.20%.
The euro was little changed against the yen, with EUR/JPY at 137.46, off the one month lows of 136.94 struck earlier in the session.
In the U.S., data showed that the number of Americans filing first time claims for unemployment benefits fell by 8,000 last week to a seasonally adjusted 287,000.
Economists had expected jobless claims to rise by 2,000 to 297,000.
Investors were looking ahead to Friday’s U.S. nonfarm payrolls report, which was expected to show that the economy added more than 200,000 jobs for a sixth successive month in August.