The Governing Council of the European Central Bank found it prudent to leave the benchmark interest rate at a record low of 0.00% and opted to keep buying €60 billion a month at least through December.
The Central Bank also slashed its inflation target to 1.20% and 1.50% compared to earlier estimates of 1.30% and 1.60% for 2018 and 2019 respectively. In a conference following the decision, ECB President Mario Draghi said any potential policy tapering decision will likely be made in October, improving the short-term outlook for the single currency.
The US dollar found itself under further pressure following data that showed Americans filing for unemployment benefits surged to the highest level in over two years amidst a jump in applications in hurricane-hit Texas.
EURUSD is extending its gains from the previous session to last trade around 1.2060.