2016.08.1808:43:00UTC+00Euro Rallies Vs Dollar As ECB Policy Makers Hesitant To Act After Brexit Vote

The euro rallied against the U.S. dollar in the European session on Thursday, after the minutes from the European Central Bank's July meeting showed that policy makers wanted more time to assess the aftershocks of the Brexit and felt it too early to discuss any possible monetary policy reaction at the present scenario.

"More time was needed to assess the incoming information over the coming months, although downside risks had clearly increased, the minutes said. The governing council meeting was held on July 20-21.

The ECB left its key interest rates unchanged for a third straight session in July.

Policymakers widely agreed that the immediate policy focus should remain on implementing the comprehensive set of policy measures decided in early March.

In other economic news, final data from Eurostat showed that Eurozone inflation increased, as initially estimated, in July.

Inflation rose to 0.2 percent from 0.1 percent in June. Prices have increased for the second straight month in July.

The currency showed mixed trading against its major counterparts in the Asian session. While the euro rose against the greenback and the franc, it held steady against the pound. Against the yen, it declined.

The euro added 0.5 percent to hit near a 2-month high of 1.1339 against the greenback, compared to 1.1285 hit late New York Wednesday. The euro is seen finding resistance around the 1.15 level.

The euro, having fallen to a 2-day low of 112.65 against the yen at 7:30 pm ET, reversed direction and climbed to 113.70. On the upside, 114.00 is possibly seen as the next resistance level for the euro.

Data from the the Ministry of Finance showed that Japan posted a merchandise trade surplus of 513.510 billion yen in July.

That topped expectations for a surplus of 273.2 billion yen following the upwardly revised 693.1 billion yen surplus in June.

The euro slipped to a 6-day low of 0.8591 against the pound, from an early high of 0.8672, and held steady thereafter. At Wednesday's close, the pair was valued at 0.8650.

Data from the Office for National Statistics showed that U.K. retail sales rebounded in July as food and non-food store sales increased from June.

Retail sales volume including automotive fuel climbed 1.4 percent month-on-month in July, reversing a 0.9 percent fall in June. Sales were expected gain only 0.1 percent.

The single currency held steady against its Swiss counterpart with the pair trading at 1.0851, after easing from a 2-day peak of 1.0870 set at 1:30 am ET. The euro-franc pair was quoted at 1.0859 when it finished yesterday's trading.

Looking ahead, the Conference Board's U.S. leading indicators index for July is due shortly.

At 10:05 am ET, Federal Reserve Bank of New York President William Dudley is expected to speak about economic conditions at a Federal Reserve Bank of New York press briefing.

At 4:00 pm ET, Federal Reserve Bank of San Francisco President John Williams will deliver a speech on the economic outlook at a luncheon hosted by Anchorage Economic Development Corp in Anchorage, United States.