The euro trimmed its early losses in early New York deals on Thursday, after the European Central Bank President Mario Draghi dampened prospectus for future rate cuts, as he expects the new stimulus package to work through euro area economy.
Speaking at press conference in Frankfurt, Draghi said the ECB decision to impose negative interest rates on eurozone banks has desired effects.
At the meeting, the bank lowered its benchmark interest rate, the main refinancing rate, by five basis points to a record low zero percent. The negative deposit rate was cut by 10 basis points to -0.40 percent and the marginal lending facility rate was reduced by five basis points to 0.25 percent.
The euro appreciated to more than a 2-week high of 1.1115 against the greenback and an 8-day high of 0.7799 against the pound, off early 1-1/2-month low of 1.0822 and a 5-week low of 0.7653, respectively.
The euro edged up to 1.0996 against the franc and 1.4745 against the loonie, coming off from its previous 6-day low of 1.0892 and a 3-month low 1.4389, respectively.
The single currency climbed to a 3-week high of 126.25 against the yen, 10-day high of 1.6614 versus the kiwi and a 2-day high of 1.4866 against aussie, from its early lows of 123.65 and 1.6234, and a 3-month low of 1.4467, respectively.
The euro is likely to find resistance around 1.13 against the greenback, 127.00 against the yen, 1.105 against the franc, 0.79 against the pound, 1.48 against the loonie, 1.50 against the aussie and 1.68 against the kiwi.
The material has been provided by InstaForex Company – www.instaforex.com