On Thursday the euro dropped to an eight-year trough against the pound, as
sentiment on the single currency weakened before the European Central
Bank's press conference and as Greece remained in focus.
Meanwhile, expectations for a rate
hike in the U.K. spurred demand for sterling.
EUR/GBP fell to 1.696, the weakest since November 2007 and was last at 0.6980, shedding 0.28% for the day.
EUR/USD was last at 1.0883 dropping 0.61%.
As media reports say, the European Central Bank has left interest rates across the eurozone unchanged.
The headline rate remains at a record low of 0.05%. The deposit rate stays at -0.2%, meaning banks will still face negative interest rates for leaving cash at the ECB.
The marginal lending rate (charged to banks borrowing from the ECB) remains at 0.3%.
The euro was fragile after Greece’s parliament passed tough austerity measures demanded by the country’s creditors in order to secure a third bailout package.
The vote paved the way for negotiations on a third bailout package, but also raised concerns over the future of Greek Prime Minister Alexis Tsipras' government as about a quarter of lawmakers within his coalition voted against the deal. Tsipras was expected to replace several ministers in a cabinet reshuffle later Thursday.
Earlier in the week, Bank of
England Governor Mark Carney said that the time for
the bank to raise rate is moving closer. The remarks boosted the demand for sterling.
Sterling was lower against the dollar, with GBP/USD slipping 0.27% to 1.5594.
The greenback was underpinned by Wednesday's remarks from Fed Chairwoman Janet Yellen who said the central bank was on track to raising rates this year despite noticeable turmoils overseas.
