EURJPY Euro vs Japanese Yen

Thursday, the euro showed little response to the European Central Bank decision maintaining interest rates at record low as expected, with investors focus to the press conference by the ECB chief Mario Daghi for more indications about its stimulus programe amid threats to global growth.

The Governing Council, led by ECB President Mario Draghi, kept the refinancing rate at a record low 0.05 percent, following the meeting in Frankfurt. The decision was in line with economists' expectations.

The bank also left the deposit rate unchanged at -0.20 percent and the marginal lending rate at 0.30 percent. The three main interest rates were lowered by 10 basis points in September last year.

Draghi will hold his customary post-decision press conference at 8.30 am ET, when he is set to unveil the latest ECB staff macroeconomic forecasts. Inflation forecasts are widely expected to be lowered.

The currency trended higher in early deals, after data showed that the economic activity across the currency bloc gathered pace in August

Final data from Markit showed that Eurozone private sector growth improved more than estimated in August.

The final composite output index rose to 54.3 in August from 53.9 in July. The flash reading for August was 54.1.

Business activity improved at the fastest pace in over four years. Levels of incoming new business also rose at a solid, albeit slightly slower pace to support the second-quickest rate of job creation since May 2011, the survey showed.

The euro showed mixed performance in the Asian session. While the euro held steady against the yen, it was down against the greenback, franc and the pound.

Although the euro rebounded from an early 3-day low of 1.1204 against the greenback, it failed to hold its gains in subsequent deals. The pair was trading at 1.1235, compared to Wednesday's closing value of 1.1223.

The euro held steady against the pound, after bouncing off from an early 2-day low of 0.7322. The pair was valued at 0.7334 at Wednesday's close.

Survey results from Markit Economics and the Chartered Institute of Procurement & Supply showed that British services growth unexpectedly slowed for second straight month in August to its weakest rate in over two years as new business growth eased.

The Markit/CIPS services purchasing managers' index dropped to 55.6, which was the weakest score since May 2013.

The common currency traded steadily against the franc, following an advance to a session's high of 1.0901 at 5:00 am ET. At Wednesday's close, the pair traded at 1.0877.

The 19-nation currency remained lower against the Japanese yen, with the pair trading at 135.04. Further weakness may take the euro to a support around the 134.00 region.

Looking ahead, Canada and U.S. trade data for July, U.S. weekly jobless claims for the week ended August 29 and U.S. ISM non-manufacturing PMI for August are slated for release in the New York session.

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