Euro reached a fresh new one-month high versus the US dollar on Thursday, as ECB kept the current course of monetary policy and after President Mario Draghis optimistic tone at the expected press conference today.
EUR/USD hit 1.3175 during early American trade, currently the session high and highest since May 9th, after which consolidation followed at 1.3165. Support was expected at todays session low, 1.3074, while resistance was to be met at May 8th high, 1.3193.
Earlier today at its monthly meeting the European Central Bank (ECB) introduced no change in its benchmark interest rate, leaving it at a record low level of 0.50%, after the rate was decreased by 0.25% in May. Deposit rates remained at zero.
The euro received support after the cautiously optimistic tone of Mario Draghis statement, in which he said Euro zones economic recovery was expected to begin later this year. ECB revised down its forecast, regarding economy in 2013, and announced that the Gross Domestic Product would probably shrink by 0.6% in comparison with the previously projected 0.5%. As far as 2014 growth was concerned, the European Central Bank predicted an increase by 1.1%, revised up from 1.0%. In spite of ECB readiness to make way for negative interest rates on deposits, it was said that there was no obvious indication such action was necessary.
Meanwhile, official data from the United States showed that Initial Jobless Claims dropped slightly than expected during last week. The number of people, who filed for unemployment assistance, fell by 11 000 to 346 000 during the week until June 1st 2013, missing projections that the number would drop to 345 000. Initial Jobless Claims were revised to 357 000 during the preceding week, from a previously reported 354 000.
Additionally, a day ago it became clear that US non-farm private sector added fewer job posts in May than expected, diminishing expectations that FED would begin a scale back of its easing program later this year.
Euro hit session high versus the British pound and the Japanese yen, with EUR/GBP, increasing to 0.8509 and EUR/JPY, climbing to 130.35.
Also today the Bank of England left base interest rate on hold at a record low 0.5% and kept the scale of its easing program unchanged at 375 billion GBP.
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