Shutterstock photo
Markets

Forex - EUR/USD steady, recovers from ECB annoucements

Shutterstock photo

Shutterstock photo

Investing.com -

Investing.com - The euro was steady against the U.S. dollar on Friday, as the single currency recovered from Thursday's announcement of a new series of measures by the European Central Bank, including a 0.10% rate cut.

EUR/USD hit 1.3654 during late Asian trade, the session low; the pair subsequently consolidated at 1.3651, easing 0.06%.

The pair was likely to find support at 1.3589, the low of June 3 and resistance at 1.3723, the high of May 21.

The euro dropped to a four-month low against the dollar on Thursday after ECB President Mario Draghi said that the bank is prepared to act swiftly with further monetary easing measures, including asset-backed security purchases, in case of a prolonged period of low inflation.

Speaking at the ECB's post-policy meeting press conference, Draghi also said that the central bank we will be conducting a series of Targeted Longer Term Refinancing Operations (TLTROs), to support bank lending.

The comments came after the ECB lowered its benchmark interest rate to a record-low 0.15% from 0.25%, compared to expectations for a cut to 0.1%.

The central bank also cut its marginal lending to 0.40% from 0.75% and lowered its deposit facility rate to -0.10% from 0.0%.

Market participants were now eyeing U.S. nonfarm payrolls data to be released later in the day for further indications on the strength of the job market after recent employment reports fuelled investors' concerns.

On Thursday, the Department of Labor said the number of individuals filing for initial jobless benefits in the week ending May 31 increased by 8,000 to 312,000 from the previous week's revised total of 304,000. Analysts had expected jobless claims to rise by 6,000 to 310,000 last week.

The euro was little changed against the pound, with EUR/GBP dipping 0.04% to 0.8119.

Investing.com offers an extensive set of professional tools for the financial markets.

Read more News on Investing.com and download the new Investing.com Stocks & Forex App for Android!

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


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

Other Topics

ForEx