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Forex - Euro lower after ECB holds, Draghi ahead

Published 15/04/2015, 13:09
© Reuters.  Euro remains lower after ECB holds, Draghi remarks awaited
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Investing.com - The euro remained lower against the dollar on Wednesday after the European Central Bank left monetary policy on hold, as investors awaited the bank’s post-policy meeting press conference.

EUR/USD was at 1.0581 from around 1.0598 ahead of the policy announcement.

The ECB said it was maintaining its benchmark interest rate at a record-low 0.05%, in line with market expectations. The central bank also held its marginal lending at 0.30% and left its deposit facility rate unchanged at minus 0.20%.

ECB president Mario Draghi was expected to discuss the effects of the bank's €1.1 trillion quantitative easing program on the region's economy at the press conference.

The euro was also weaker against the yen, with EUR/JPY at 126.51 from 126.56 earlier.

The dollar moved broadly higher against a basket of other major currencies, regaining ground lost in the previous session after a disappointing U.S. retail sales report.

Data showed that U.S. retail sales rose 0.9% in March, missing expectations for a 1.0% gain.

The data fuelled speculation that the Federal Reserve could delay hiking interest rates until late 2015, instead of tightening midyear.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose to 99.45, well off Tuesday’s lows of 98.58.

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