BRUSSELS (dpa-AFX) - The euro showed muted trading against its key counterparts in the European session on Thursday, after the European Central Bank left its key interest rates and forward guidance unchanged amid slowing growth momentum across the bloc.
The Governing Council, led by Mario Draghi, left the key interest rates unchanged after the policy session in Frankfurt.
The main refi rate is currently at a record low zero percent and the deposit rate at -0.40 percent. The marginal lending facility rate is at 0.25 percent.
'The Governing Council expects the key ECB interest rates to remain at their present levels at least through the summer of 2019, and in any case for as long as necessary to ensure the continued sustained convergence of inflation to levels that are below, but close to, 2 percent over the medium term,' the bank said in a statement.
'Regarding non-standard monetary policy measures, the Governing Council intends to continue reinvesting, in full, the principal payments from maturing securities purchased under the asset purchase programme for an extended period of time past the date when it starts raising the key ECB interest rates, and in any case for as long as necessary to maintain favorable liquidity conditions and an ample degree of monetary accommodation,' the ECB added.
Draghi is set to hold his post-decision press conference at 8.30 am ET.
Survey data from IHS Markit showed that Eurozone private sector expanded at the weakest pace in five-and-a-half years at the start of the year, led by weaker pace of growth in both manufacturing and services, defying expectations for further improvement.
The flash Composite Purchasing Managers' Index, or PMI, dropped to a 66-month low of 50.7 from 51.1 in December. Economists had forecast a score of 51.4.
The currency held steady against its major rivals in the Asian session, with the exception of the yen.
The euro held steady against the franc, after having dropped to an 8-day low of 1.1275 at 5:00 am ET. The pair was worth 1.1324 when it ended deals on Wednesday.
After dropping to a 3-week low of 1.1330 against the greenback at 6:10 am ET, the euro held steady in subsequent deals. The pair ended Wednesday's trading at 1.1382.
The euro was trading at 0.8716 a pound, after recovering from a 2-1/2-month low of 0.8688 seen at 4:45 am ET. At yesterday's close, the pair was worth 0.8707.
The euro dropped to 124.37 against the yen at 6:00 am ET and held steady shortly thereafter. The euro-yen pair finished yesterday's deals at 124.73.
Survey from Nikkei showed that Japan manufacturing PMI fell into stagnation in December, with a manufacturing PMI score of 50.0.
That's down from 52.6 in December and it lands right on the line that separates expansion from contraction.
Looking ahead, U.S. weekly jobless claims for the week ended January 19, leading index for December and Markit's flash services PMI for January are scheduled for release in the New York session.
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