ECB Keeps Rates Unchanged, Euro Falls

The euro weakened today, falling for the second day against the dollar and the yen, after the European Central Bank maintained its key interest rate unchanged yesterday.
The ECB left its target minimum bid rate at 1.5 percent. Central bank’s President
Jean-Claude Trichet said on the press conference after the monetary policy decision:

Looking ahead, we expect the euro area economy to grow moderately, subject to particularly high uncertainty and intensified downside risks.

Trichet stated that Eurozone gross domestic product is expected to grow “very moderately in the second half of this year” and the ECB revised its projections for GDP growth downwardly.
EUR/USD slipped from 1.3808 to 1.3810 today as of 11:42 GMT after rising to 1.3939 earlier. EUR/JPY went down from 107.58 to 107.43.

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