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Forex - EUR/USD hits session lows ahead of Draghi

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Investing.com - The euro fell to session lows against the dollar on Thursday after the European Central Bank left rates unchanged at a record lows, as investors' awaited a press conference with President Mario Draghi.

EUR/USD hit 1.2980 during European afternoon trade, the session low; the pair subsequently consolidated at 1.2987, slipping 0.17%.

The pair was likely to find support at 1.2922, Wednesday's low and a five-week low and resistance at 1.3077, Tuesday's high.

The ECB left its benchmark interest rate unchanged at 0.5% in a widely expected decision. The bank kept its marginal lending rate steady at 1% and left its deposit facility rate unchanged at zero.

Draghi was expected to reiterate that an exit from loose monetary policy remains distant at the bank's post-policy meeting press conference later in the session.

The euro rallied against the pound following a dovish rate statement from the Bank of England.

The BoE left its benchmark interest rate unchanged at 0.5% and said economic data over the past few months was consistent with the recovery set out by the bank in its May inflation report, but warned that the "significant upward movement" in bond yields would weigh on the outlook for growth.

"In the Committee's view, the implied rise in the expected future path of Bank Rate was not warranted by the recent developments in the domestic economy", the BoE said.

The bank took the step of publishing a rate statement following its first meeting under the leadership of new Governor Mark Carney.

EUR/GBP was up 1% to trade at 0.8598, after hitting session highs of 0.8632.

Elsewhere, sterling was sharply lower against the dollar, with GBP/USD dropping 1.16% to a five week low of 1.5102.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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