Euro Declines After ECB Keeps Rates Steady

The euro drifted lower against its major counterparts in the European session on Thursday, after the European Central Bank left its key interest rates, asset purchases and forward guidance unchanged.

The Governing Council, led by ECB President Mario Draghi, left the key interest rates unchanged after the policy session in Frankfurt, in line with economists' expectations.

The main refi rate is currently at a record low zero percent and the deposit rate at -0.40 percent. The marginal lending facility rate is 0.25 percent.

"The Governing Council expects the key ECB interest rates to remain at their present levels for an extended period of time, and well past the horizon of the net asset purchases," the ECB reiterated.

The bank also confirmed that the net asset purchases, at the current monthly pace of EUR 30 billion, will run until the end of September 2018, or beyond, if necessary, and in any case until the Governing Council sees a sustained adjustment in the path of inflation consistent with its inflation aim.

Survey data from the market research group GfK showed that German consumer sentiment is set to weaken in May due to rising insecure state of geopolitics.

The consumer climate index dropped 0.1 point to 10.8 in May. The score came in line with expectations.

The currency rose against its major rivals in the Asian session, with the exception of the pound.

The euro dropped to 1.2154 against the greenback, its lowest since January 12. At Wednesday's close, the pair was worth 1.2160. The euro is poised to challenge support around the 1.19 mark.

The euro reversed from an early high of 133.26 against the yen, falling to a 2-day low of 132.71. The pair was worth 133.07 when it closed deals on Wednesday. The euro is seen challenging support around the 131.00 area.

Having climbed to 0.8751 against the pound at 5:00 am ET, the euro pulled back to hit a weekly low of 0.8709. At yesterday's close, the pair was worth 0.8729. Next key support for the euro is likely seen around the 0.86 level.

Data from the Confederation of British Industry showed that British retailers expect retail sales volume to recover next month.

The retail sales balance came in at -2 percent in April compared to a healthier expectations of +16 percent.

The euro eased back to 1.1967 against the Swiss franc, from a high of 1.1985 hit at 6:00 am ET. The euro is thus heading to pierce a 2-day low of 1.1952 hit at 5:00 pm ET. If the euro continues its decline, 1.18 is possibly seen as its next support level.

The euro edged down to 1.7184 against the kiwi, after having advanced to a 4-1/2-month high of 1.7257 at 2:45 am ET. The next possible support for the euro is seen around the 1.70 area.

The 19-nation currency slipped to a 6-day low of 1.5604 against the loonie and a 2-day low of 1.6057 against the aussie, coming off from its early highs of 1.5655 and 1.6110,respectively. The euro is likely to find support around 1.52 against the loonie and 1.58 against the aussie.

Looking ahead, U.S. weekly jobless claims for the week ended April 21, durable goods orders and wholesale inventories for March are due in the New York session.

Euro vs CAD (FX:EURCAD)
FXチャート
から 3 2024 まで 4 2024