Euro drops for second straight session after ECB meeting

Euro slid on Thursday in American trade to the lowest since late May, following earlier data from the euro zone and the US, and after the European Central Bank's policy decision today to hold interest rates steady. 

As of 03:44 GMT, EUR/USD fell 0.36% to to 1.1216 from the opening of 1.1257, with an intraday high at 1.1269, and a one-week low at 1.1195. 

Earlier euro zone data showed German Industrial production up past expectations in April. while the French trade deficit rose below expectations, as the final GDP reading for the whole region showed a 0.6% growth rate in the first quarter, up from 0.5% in the preliminary reading. 

ECB policymakers opted to hold the Minimum Bid Rate unchanged at zero, while also holding the deposit rate at the record negative 0.40%, before president Mario Draghi asserted the bank's resolve to carry on its easing program until the end of 2017, with a possibility of extending it beyond that if needed. 

Draghi said in the post-meeting conference that recent euro zone data, including a surge in the PMI to 2011 highs, while the unemployment rate fell to 2009 lows, showed that economic growth is gaining momentum, which announcing an upgrade to growth forecasts and a downgrade for inflation. 

Draghi added that policymakers didn't discuss the possibility of normalizing the monetary policy, while two members delved into the monetary easing mechanism and its relation with current inflation, pointing that financial and monetary unity isn't perfect yet, while the 60 billion euro a month easing program is effective and flexible enough and takes into consideration the stabilization of prices in the region. 

Otherwise, US unemployment claims fell to 245 thousand in the week ending June 3 from 255K in the previous reading, revised down from 248K, while analysts expected a drop to 241K. 

Continuing claims fell two thousand to 1.917 million in the week ending May 27 from 1.919 million, compared to expectations of 1.92M.