Euro Steady After Draghi Says ECB Is Open To Unconventional Tools

The euro was steady at $1.246 at 7:30 GMT on Thursday morning as the dollar's rally was put on hold while investors waited for fresh data. The common currency has been under pressure recently as the region’s financials have been pointing to another recession on the horizon.

On Wednesday, the Wall Street Journal reported that European Central Bank President Mario Draghi said that the bank was considering using new measures if the current stimulus packages don’t do their job and kick start the economy. The bank has already begun a series of covered bond purchases, as well as trimming interest rates to record lows over the summer.

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Draghi said the measures are designed to improve the region’s dangerously low inflation figures, last recorded at 0.4 percent annually. However, if inflation continues to drop in spite of the bank’s stimulus, Draghi has said the bank is willing to look into using unconventional measures stop the region from falling into a period of deflation.

Data from the eurozone hasn't been promising so far, with factory production figures for September showing just a 0.6 percent increase in September, below expectations of a 0.7 percent rise. The factory production figures are the region’s last data release before third quarter GDP is announced on Friday. Most are expecting the GDP report to show that growth has all but ground to a halt with just a 0.1 percent increase from the quarter before.

Meanwhile, the dollar’s rally was put on pause as investors eagerly awaited more data.The United States is set to release initial and continuing jobless claims, while retail sales figures are due out on Friday.