Euro Weakens As ECB Pledges To Keep Interest Rates Lower For Extended Period
05:14, 22nd July 2021
(RTTNews) - The euro depreciated against its major counterparts in the European session on Thursday, after the European Central Bank left its key interest rates and the pandemic emergency purchase programme unchanged and pledged to keep interest rates at their present or lower levels until inflation attains the 2 percent target.
The Governing Council maintained the main refi rate at a record low of zero percent and the deposit rate at -0.50 percent. The marginal lending facility rate is at 0.25 percent.
The Governing Council retained the pandemic emergency purchase programme at EUR 1.85 trillion and it is expected to run until end of March 2022.
"The Governing Council expects the key interest rates to remain at their present or lower levels until it sees inflation reaching two per cent well ahead of the end of its projection horizon and durably for the rest of the projection horizon, and it judges that realised progress in underlying inflation is sufficiently advanced to be consistent with inflation stabilising at two per cent over the medium term."
The euro depreciated to 1.1771 against the greenback, from a 3-day high of 1.1813 seen at 7:45 am ET. The euro is seen finding support around the 1.16 level.
The euro eased off to 129.74 against the yen, after rising to a 6-day high of 130.23 at 7:45 am ET. The euro may face support around the 126 level.
The euro extended its early decline against the pound, touching a 6-day low of 0.8550. Should the euro falls further, it is likely to test support around the 0.84 region.
The euro slipped to an 8-day low of 1.4774 against the loonie, 3-day lows of 1.5949 against the aussie and 1.6899 against the kiwi, from Wednesday's closing values of 1.4810, 1.6017 and 1.6906, respectively. The next likely support for the euro is seen around 1.46 against the loonie, 1.58 against the aussie and 1.67 against the kiwi.
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