Investing.com - The euro was steady against the dollar on Thursday, holding above the nine month lows reached in the previous session ahead of the conclusion of the European Central Bank policy meeting later in the day.
EUR/USD was trading at 1.3378, off Wednesday’s lows of 1.3332, the weakest level since November 8.
The pair was likely to find support at around the 1.33 level and resistance at 1.3420.
Investors were awaiting the ECB’s rate statement later Thursday, as concerns over the divergence in monetary policy between it and its major peers continued to weigh on the single currency.
The ECB was expected to keep monetary policy unchanged after it cut rates to record lows in June in a bid to avert the threat of deflation in the region.
The latest data showed that the annual rate of inflation in the euro area slowed to 0.4% in July from 0.5% in June, adding to pressure on the central bank to do more.
The euro fell to nine month lows against the dollar on Wednesday after data showed that Italy unexpectedly slid back into a recession in the second quarter and another report showing that German factory orders fell unexpectedly in June.
The weak data underlined concerns that the recovery in the euro area is losing momentum.
The euro pushed higher against the yen, with EUR/JPY easing up 0.13% to 136.82, off Wednesday’s eight-month lows of 136.15.
Elsewhere Thursday, the dollar moved higher against the yen, with USD/JPY rising 0.16% to 102.28, after falling to one-and-a-half week lows of 101.77 in choppy trade on Wednesday.