The euro climbed against its major counterparts in the European session on Thursday, after the European Central Bank left its interest rates and its forward guidance unchanged and asserted that its massive asset purchase program would end in December.
"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 ECB said in a statement following the conclusion of the Governing Council meeting in Frankfurt.
The bank also reiterated its guidance for its asset purchases.
The ECB had halved its monthly bond purchases to EUR 15 billion this month and plans to end them in December.
ECB President Mario Draghi is set to hold the press conference at 8.30 am ET in Frankfurt.
Survey data from Ifo Institute showed that Germany's business sentiment weakened for the second straight month in October.
The business climate index fell more-than-expected to 102.8 in October from 103.7 in September. The expected score was 103.2.
The currency rose against its major counterparts in the Asian session, barring the franc.
The euro rose back to 0.8850 against the pound, from a low of 0.8831 hit at 3:15 am ET. The currency is thus not far from a 3-day high of 0.8857 hit at 1:20 am ET. If the euro rises further, it may find resistance around the 0.90 level.
The euro was marginally higher against the greenback with the pair trading at 1.1412.This follows a low of 1.1391 hit at 5:00 pm ET. The euro is poised to challenge resistance around the 1.16 mark.
The single currency remained firm at 1.1405 against the franc, up from a low of 1.1356 hit at 5:30 pm ET. The next possible resistance for the euro is seen around the 1.16 level.
After falling to more than a 2-month low of 127.50 against the yen at 8:00 pm ET, the euro reversed direction and advanced to 128.31. The euro is seen finding resistance around the 131.00 mark.
Data from the Bank of Japan showed that Japan producer prices rose 1.2 percent on year in September, matching expectations and down from 1.3 percent in August.
On a monthly basis, producer prices added 0.1 percent following the flat reading in the previous month.
The euro reached as high as 1.4900 against the loonie, compared to yesterday's closing value of 1.4873. The euro is likely to find resistance around the 1.51 level.
On the flip side, the euro retreated to 1.6089 against the aussie and 1.7457 against the kiwi, from its early high of 1.6161 and a 2-day high of 1.7525, respectively. On the downside, 1.56 and 1.72 are likely seen as the next support levels for the euro against the aussie and the kiwi, respectively.
Looking ahead, U.S. weekly jobless claims for the week ended October 20, pending home sales, durable goods orders, wholesale inventories and advance goods trade balance for September are due in the New York session.
At 12:15 pm ET, Federal Reserve Governor Richard Clarida speaks about the economic outlook and monetary policy at the Peterson Institute for International Economics Luncheon in Washington DC.
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