Euro Declines As ECB Holds Rates Steady
July 18 2024 - 10:01AM
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The euro was lower against its most major counterparts on
Thursday, as the European Central Bank left its key interest rates
unchanged and said policymakers would follow a data-dependent
approach on rate path.
The Governing Council, led by ECB President Christine Lagarde,
held the main refinancing rate at 4.25 percent, the deposit
facility rate at 3.75 percent and the marginal lending rate at 4.50
percent.
"The Governing Council is determined to ensure that inflation
returns to its 2 percent medium-term target in a timely manner,"
the ECB said.
"It will keep policy rates sufficiently restrictive for as long
as necessary to achieve this aim."
The ECB reiterated that the Governing Council is not
pre-committing to a particular rate path and did not give further
forward guidance this time.
But analysts expect two further interest rate cuts this year,
possibly in September and December.
The euro fell to 1.0904 against the greenback, 1.4927 against
the loonie and 1.7962 against the kiwi, from yesterday's close of
1.0938, 1.4968 and 1.7988, respectively. The currency is seen
finding support around 1.07 against the greenback, 1.46 against the
loonie and 1.75 against the kiwi.
The euro dropped to 0.8403 against the pound, from a 1-week high
of 0.8422 hit at 8:45 am ET. The pair was worth 0.8409 at
yesterday's close. The currency may locate support around the 0.82
level.
The euro weakened to 1.6188 against the aussie, reversing from a
fresh 5-week high of 1.6285 seen at 9 pm ET. The pair was valued at
1.6257 at yesterday's close. If the currency falls further, it is
likely to test support around the 1.60 region.
The euro touched 0.9642 against the franc, its lowest level
since July 1. At yesterday's close, the pair was quoted at 0.9664.
The euro is poised to challenge support around the 0.95 level.
In contrast, the euro rose against the yen and was trading at
171.27. The currency is likely to locate resistance around the
175.00 level.
Euro vs US Dollar (FX:EURUSD)
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