Investing.com
Published Apr 04, 2013 07:57AM ET
Investing.com - The euro trimmed losses against the dollar on Thursday after the European Central Bank announced no change to monetary policy as investors awaited comments by President Mario Draghi at the bank’s post policy meeting press conference.
EUR/USD pulled back from 1.2784, the pair’s lowest since Monday, to hit 1.2811 during European afternoon trade, still down 0.30% for the day.
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 left interest rates on hold at 0.75% in a widely expected decision.
Sentiment on the single currency remained fragile amid concerns that Draghi could indicate that the bank is considering a rate cut or other possible policy measures amid concerns over the deteriorating economic outlook for the currency bloc.
Worries over the possible implications of a bailout deal for Cyprus also weighed.
The euro was lower against the pound, with EUR/GBP sliding 0.20% to 0.8473.
Sterling found support after the Bank of England left interest rates on hold at 0.5% and the size of its asset purchase program unchanged at GBP375 million in a widely expected decision.
The decision came on the heels of data showing that the U.K. service sector expanded at the fastest pace in seven months in March, fuelling hopes that the economy will narrowly avoid a triple-dip recession.
The single currency extended its rally against the broadly weaker yen, with EUR/JPY surging 2.32% to 122.26.
The yen fell across the board on Thursday after the Bank of Japan implemented aggressive easing measures aimed at spurring growth and combating deflation in the world’s third largest economy.
The BoJ, under the leadership of 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.
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.