Investing.com - The euro was holding below two-month highs against the dollar on Thursday as investors looked ahead to the outcome of the European Central Bank’s policy meeting later in the trading day.
EUR/USD was trading at 1.3915, not far from the two-month peak of 1.3950 struck on Monday.
The pair was likely to find support at 1.3870 and resistance at 1.3950.
The ECB was widely expected to leave monetary policy on hold after recent data showed that the annual rate of inflation in the euro zone ticked up to 0.7% in April from a record low 0.5% in March. The ECB targets inflation of close to but just below 2%.
The uptick in consumer prices eased pressure on the bank to implement fresh policy measures to tackle low inflation in the region.
The dollar remained under pressure after Federal Reserve Chair Janet Yellen said Wednesday that a high degree of monetary accommodation remains warranted given the slack in the economy.
Ms. Yellen also said the Fed expects economic growth to accelerate this year despite the slowdown in the first quarter but warned that the recent housing market slowdown "could prove more protracted than currently expected."
The euro was steady against the yen, with EUR/JPY trading at 141.65.
Market sentiment was boosted after official data on Thursday showed that Chinese imports and exports both rose slightly in April from a year earlier, confounding forecasts for them to decline. The data eased concerns over a slowdown in the world’s second-largest economy.
Elsewhere, the dollar was slightly lower against the yen, with USD/JPY sliding 0.13% to 101.76, holding above the three-week trough of 101.42 struck in the previous session.