The euro was trading near four-month lows against the dollar on Thursday
as concerns over the deteriorating outlook for the euro zone weighed
ahead of the European Central Bank’s policy decision later in the
session.
EUR/USD hit 1.2784 during European morning trade, the pair’s lowest since Monday; the pair subsequently consolidated at 1.2796, shedding 0.40%.
The pair was likely to find support at 1.2750, the low of March 27 and a four-month trough and resistance at 1.2852, the session high.
The ECB was not expected to announce any changes to monetary policy on Thursday.
Investors remained wary ahead of comments from President Mario Draghi at the bank’s post-policy meeting press conference after recent weak economic data added fears over the outlook for first quarter growth.
Worries over the possible implications of the bailout deal for Cyprus and ongoing political uncertainty in Italy also weighed.
The euro rallied against the broadly weaker yen, with EUR/JPY jumping 2.24% to 122.19 after the Bank of Japan implemented aggressive easing measures, aimed at combating deflation in the world’s third largest economy.
The BoJ, under newly appointed Governor Haruhiko Kuroda, said it plans to double its asset purchase program over the next two years and extend the maturities of the bonds it purchases.
Elsewhere, the euro was slightly higher against the pound, with EUR/GBP edging up 0.12% to 0.8499.
The pound re4mained supported after data showing that the U.K. service sector expanded at the fastest pace in seven months in March fuelled hopes that the economy will narrowly avoid a triple-dip recession.
The Bank of England was expected to keep monetary policy unchanged after its meeting later Thursday.
EUR/USD hit 1.2784 during European morning trade, the pair’s lowest since Monday; the pair subsequently consolidated at 1.2796, shedding 0.40%.
The pair was likely to find support at 1.2750, the low of March 27 and a four-month trough and resistance at 1.2852, the session high.
The ECB was not expected to announce any changes to monetary policy on Thursday.
Investors remained wary ahead of comments from President Mario Draghi at the bank’s post-policy meeting press conference after recent weak economic data added fears over the outlook for first quarter growth.
Worries over the possible implications of the bailout deal for Cyprus and ongoing political uncertainty in Italy also weighed.
The euro rallied against the broadly weaker yen, with EUR/JPY jumping 2.24% to 122.19 after the Bank of Japan implemented aggressive easing measures, aimed at combating deflation in the world’s third largest economy.
The BoJ, under newly appointed Governor Haruhiko Kuroda, said it plans to double its asset purchase program over the next two years and extend the maturities of the bonds it purchases.
Elsewhere, the euro was slightly higher against the pound, with EUR/GBP edging up 0.12% to 0.8499.
The pound re4mained supported after data showing that the U.K. service sector expanded at the fastest pace in seven months in March fuelled hopes that the economy will narrowly avoid a triple-dip recession.
The Bank of England was expected to keep monetary policy unchanged after its meeting later Thursday.
