Forexpros – The euro rose to a session high against the U.S. dollar on Thursday, after the European Central Bank left interest rates on hold, as investors looked ahead to the central bank’s press conference later in the session.
EUR/USD hit 1.2315 during European afternoon trade, the session high; the pair subsequently consolidated at 1.2310, gaining 0.70%.
The pair was likely to find support at 1.2216, the session low and resistance at 1.2335, Wednesday’s high.
The euro extended gains against the greenback after the ECB left its benchmark interest rate unchanged at a record low 0.75%. The bank’s President Mario Draghi was to hold a keenly anticipated press conference later in the session.
Expectations that the ECB may resume its bond buying program, to help lower Spanish and Italian borrowing costs, have been building since Draghi pledged last week to do whatever it takes to preserve the euro.
Earlier Thursday, Spain successfully auctioned EUR3.13 billion of government bonds, the top end of the targeted range, but borrowing costs were higher while demand was weaker.
Spain’s Treasury sold EUR1.05 billion of 10-year bonds at an average yield of 6.64%, slightly up from 6.43% last month.
The euro was also higher against the pound and the yen, with EUR/GBP up 0.35% to 0.7897 and EUR/JPY rising 0.49% to 96.35.
The Bank of England’s monetary policy committee left its benchmark interest rate unchanged at 0.5% earlier and kept the size of its quantitative easing program at GBP375 billion, boosting sterling.
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