Euro Breaks The $1.20 Level After ECB Keeps Rates Unchanged

The euro strengthened broadly versus its peers on Thursday after the European Central Bank left interest rates unchanged as widely expected. The pair EURUSD broke the $1.20 level.

The euro hit an intraday high of $1.2059 before retreating to $1.2010, up around 0.8 percent from $1.1917 late Wednesday in New York. The ECB Governing Council on Thursday kept its benchmark interest rate unchanged at 0%, repeating that it expects rates to remain at present levels for an “extended period. According to the central bank, the ECB will keep buying €60 billion a month at least through the end of December.

During the news conference following the decision, President Mario Draghi claimed that the market should expect consequences from the appreciation of the euro while saying that the central bank’s outlook for growth and inflation in the euro area remained “broadly unchanged” which means the ECB continued to take an optimistic view of the eurozone economy’s growth prospects.

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