Forex - EUR/USD pushes higher, gains capped

The euro pushed higher against the dollar on Thursday, but gains were limited after the European Central Bank reiterated that an exit from exit from accommodative monetary policy remains distant.

EUR/USD hit 1.3088 during late Asian trade, the session high; the pair subsequently consolidated at 1.3030, rising 0.17%.

The pair was likely to find support at 1.2983, Wednesday’s low and a three-week low and resistance at 1.3086, Wednesday’s high.

The euro remained under pressure after European Central Bank President Mario Draghi said Wednesday that monetary policy will remain accommodative for the foreseeable future.

Demand for the dollar continued to be underpinned by expectations that the Federal Reserve will start to unwind its asset purchase program later this year, despite a downward revision to U.S. first quarter growth on Wednesday.

The Commerce Department said U.S. gross domestic product expanded at an annual rate of 1.8% in the three months to March, below an earlier estimate of 2.4% growth. Economists had expected the rate of growth to remain unchanged at 2.4%.

Elsewhere, the euro was fractionally higher against the pound, withEUR/GBP inching up 0.05% to 0.8498 and was stronger against the yen, with EUR/JPY advancing 0.47% to 127.76.

The U.S. was to release the weekly government report on initial jobless claims and a report on pending home sales later Thursday, while Germany was to produce data on unemployment and import prices.