The euro dropped to 1.1006 against the franc, while it retreated to 0.8627 against the pound
The euro was weaker against its most major opponents in the European session on Thursday, as the minutes from the European Central Bank’s March meeting showed that members broadly agreed that a significant rise in the pace of its asset purchases was warranted by the observed tightening of financing conditions and the lack of a material improvement in the growth and inflation outlook.
Policy makers expressed broad support for proposal to conduct purchases under the PEPP over the next quarter at a significantly higher pace than during the first few months of the year, according to the minutes from the ECB’s March 10-11 policy meeting.
Some policymakers argued that a more moderate increase in the pace would better reflect the assessment of more balanced risks to the outlook, also in the light of previous decisions when a similar pace had been chosen but economic conditions had been worse.
The Governing Council needed to avoid giving the impression of being overly focused on sovereign yields or reacting mechanically to a set of indicators of financing conditions, the minutes said.
There was wide agreement that the flexibility embodied in the PEPP was symmetric, implying that the purchase pace could be increased and decreased according to market conditions, the minutes added.
ECB members agreed that the governing Council would undertake a quarterly joint assessment of financing conditions and the inflation outlook to determine the pace of purchases required to keep financing conditions favourable.
The euro showed a mixed trend against its major rivals in the Asian session. While it dropped against the yen, it was steady against the pound and the franc. Versus the greenback, it climbed.
The pan-European currency dropped to an 8-day low of 129.57 against the yen from Wednesday’s close of 130.37. The euro is seen finding support around the 126.00 region.
The euro dropped to 1.1006 against the franc, its lowest level since March 17. At Wednesday’s close, the pair was valued at 1.1026. Should the euro slides further, 1.07 is likely seen as its next support level.
The euro retreated to 0.8627 against the pound, after rising to 0.8657. The euro-pound pair had finished yesterday’s trading session at 0.8639. The euro may locate support around the 0.84 level.
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