The euro snapped its earlier gains during Thursday's trading after the European Central Bank kept interest rates unchanged during the first monetary policy meeting of the year, with the launch of the strategy review, in a move that occurs for the first time since 2003.
As of 014:23 GMT, The EURUSD pair traded at 1.1064 after hitting today's high at 1.1087, while it opened today at 1.1091. Against the pound, the European currency was down at 0.8437.
The ECB's monetary policy statement on Thursday revealed that the Bank has decided to stabilize interest rates on refinancing and interest rates on marginal lending and on deposit facilities as unchanged at 0.00, 0.25 and -0.50 percent, respectively.
ECB policymakers expect key interest rates to remain at or below current levels until inflation expectations show a strong convergence to levels close to the inflation target of less than 2 percent.
The bank confirmed that it will continue the pace of monthly asset purchases of around €20 billion.
They noted that this program will be implemented as long as necessary, with the emphasis on ending it shortly before the start of the move to increase interest rates.
Meanwhile, the Bank's Board of Governors announced that it had decided to launch a review of the Bank's monetary policy strategy, noting that further details on the process, both time-time and scope, would be announced later today.
Christine Lagarde remarks
ECB President Christine Lagarde has made it clear that there is no specific or appropriate time for the strategic review and the interest rate cut targets appear to have been achieved.
She also added that the purpose of the review is to evaluate monetary policy instruments and its impact on the economy and the time needed.
Lagarde stressed that she will not talk about specific countries, but the use of other financial instruments such as fiscal policy will support future goals.
"I'm concerned about low rates, because they are predicated on low growth. I would much rather have much higher growth, higher rates. But this is not the situation we have at the moment," said Christine Lagarde.
The ECB will take into consideration all the potential side effects of low rates as part of our strategy review.
She said the ECB would
continue to monitor the impact of its decisions on inflation, revealing that the
euro area has been particularly affected by a recent slowdown in the global