Forex News: Euro Mixed After ECB Announcement

Euro Mixed After ECB Announcement

(RTTNews) - The euro showed mixed trading against its major counterparts in the New York session on Thursday, after the European Central Bank lowered its key rates by 25 basis points, as expected.

With this decision, the interest rate on the main refinancing operations, the interest rates on the marginal lending facility and the deposit facility stood at 2.15%, 2.4% and 2%, respectively.

However, the ECB hinted at a pause in its year-long easing cycle after inflation finally returned to its 2% target.

The decision to lower the deposit facility rate-the rate through which the governing council steers the monetary policy stance-is based on its updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission, ECB President Christine Lagarde said at the press conference.

"Inflation is currently at around the governing council's 2% medium-term target."

The euro retreated to 1.1430 against the greenback and 0.8418 against the pound, from an early 1-1/2-month high of 1.1494 and a 2-day high of 0.8447, respectively. The next possible support for the currency is seen around 1.12 against the greenback and 0.83 against the pound.

The euro climbed to a 3-week high of 0.9399 against the franc. The currency is seen finding resistance around the 0.95 level.

The euro advanced to a fresh 3-week high of 164.67 against the yen, from an early 2-day low of 162.90. The currency may find resistance around the 166.00 level.

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