Euro Mixed After ECB Minutes
The euro came in mixed against its major counterparts in the
European session on Thursday, after the minutes from the European
Central Bank's recent meeting showed that policy makers assessed
that the central bank must maintain an accommodative monetary
policy stance to offset the negative impact of the pandemic on
inflation and to support the re-anchoring of inflation expectations
solidly around the Governing Council's new target over the medium
Members acknowledged an improvement in the economic outlook and
observed that the Governing Council's policy measures were
producing the desired effects.
"With respect to the moderate reduction in the pace of net asset
purchases under the PEPP, this was seen as proportionate, gradual
and in line with the joint assessment of the improvement in
financing conditions and the inflation outlook."
ECB members confirmed that the decision constituted a
recalibration of the programme in response to current conditions
and did not imply tapering or an end to asset purchases under the
Policy makers stressed that the board would continue to purchase
flexibly according to market conditions.
Data from Destatis showed that German industrial production
declined more than expected in August.
Industrial output fell 4 percent month-on-month in August,
reversing a 1.3 percent rise in July. Economists had forecast a
monthly fall of 0.4 percent.
The euro showed mixed trading against its major counterparts in
the Asian session. While it was steady against the greenback and
the pound, it rose against the yen and the franc.
The euro held steady against the pound, after touching 0.8493,
which was its lowest level since August 16. The euro-pound pair had
finished yesterday's trading session at 0.8505.
Survey data from the Lloyds Bank subsidiary Halifax showed that
UK house prices grew at the strongest pace since 2007 as stamp duty
holiday draws to a close.
House prices grew 1.7 percent month-on-month in September,
following an increase of 0.8 percent in August. This was the third
consecutive rise in prices.
The euro pulled back to 1.1551 against the greenback, after
climbing to 1.1572 at 7:35 am ET. The pair had closed Wednesday's
deals at 1.1553. Should the euro slides further, 1.13 is likely
seen as its next support level.
After rising to 128.92 at 3 am ET, the euro showed a lackluster
trading against the yen during the trading session. The pair was
worth 128.70 when it ended deals on Wednesday.
The euro held steady against the franc, after falling to its
lowest level since August 24, at 1.0702. At Wednesday's close, the
pair was valued at 1.0712.
Data from the State Secretariat for Economic Affairs showed that
Switzerland's jobless rate decreased marginally in September.
The jobless rate fell a seasonally to 2.8 percent in September
from 2.9 percent in August.
Looking ahead, Canada Ivey PMI for September and U.S. consumer
credit for August will be featured in the New York session.
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