The euro fell against its most major counterparts in the European session on Thursday, after the European Central Bank kept its key interest rates and massive stimulus unchanged for an eleventh straight month, while leaving the downward bias on asset purchases.

The Governing Council, led by ECB President Mario Draghi, kept all its three interest rates unchanged during the policy session in Frankfurt.

The main refi rate was held at a record low zero percent and the deposit rate at -0.40 percent. The marginal lending facility rate was kept at 0.25 percent.

The bank also retained its asset purchases of EUR 60 billion a month till December 2017, or beyond, if necessary. The size was reduced in March from EUR 80 billion.

"The Governing Council expects the key ECB interest rates to remain at their present levels for an extended period of time, and well past the horizon of the net asset purchases," the bank said in a statement.

The bank said that it would continue asset purchases beyond December 2017, if needed, to attain sustainable inflation and stands ready to increase the QE programme if the outlook worsens.

Draghi is scheduled to hold his customary post-decision press conference at 8.30 am ET, with investors awaiting signals over monetary policy outlook.

Data from the European Central Bank showed that the euro area current account surplus increased in May largely driven by trade surplus and primary income.

The current account surplus increased to EUR 30.1 billion in May from 23.5 billion in April.

The euro held steady against its major opponents in the Asian session, with the exception of the yen.

The 19-nation currency pared gains to 128.85 against the yen, from a high of 129.34 hit at 5:30 am ET. If the euro-yen pair extends slide, 126.00 is likely seen as its next support level.

Data from the Ministry of Finance showed that Japan logged a merchandise trade surplus of 439.907 billion yen in June.

That was shy of expectations for a surplus of 488.0 billion yen following the 204.2 billion yen deficit in May.

Extending early slide, the euro slipped to a 2-day low of 1.1482 against the greenback. The pair finished Wednesday's trading at 1.1515. Continuation of the euro's downtrend may see it challenging support around the 1.13 region.

The euro wiped out some of its early gains against the pound with the pair trading at 0.8872. This may be compared to a 2-day high of 0.8895 set at 7:00 am ET. On the downside, 0.87 is likely seen as the next support level for the euro.

Data from the Office for National Statistics showed that UK retail sales recovered at a faster than expected pace in June.

Retail sales grew 0.6 percent month-on-month in June, reversing a 1.1 percent fall in May. Sales were forecast to gain 0.4 percent.

The euro dropped to a 3-month low of 1.4479 against the loonie, compared to yesterday's closing value of 1.4513. The euro is poised to challenge support around the 1.43 level.

Reversing from an early high of 1.5699 against the kiwi, the euro hit a session's low of 1.5617. Next key support for the euro is seen around the 1.55 area.

The euro fell back to 1.4500 against the aussie following the decision. The currency is on track to pierce its early 3-month low of 1.4418 set at the beginning of Asian deals. On the downside, 1.43 is possibly seen as the next support level for the euro.

On the flip side, the single currency advanced to a 2-day high of 1.1048 against the franc, after having fallen to 1.0991 at 5:00 pm ET. On the upside, the euro may target resistance around the 1.11 area.

Figures from the Federal Customs Administration showed that Switzerland's foreign trade surplus decreased in June, as exports fell faster than imports.

The trade surplus shrank to CHF 2.7 billion in June from CHF 3.4 billion in the previous month.

Looking ahead, U.S. weekly jobless claims for the week ended July 15, leading indicators for June, Philadelphia Fed's manufacturing index for July and Eurozone consumer confidence index for July are slated for release in the New York session.

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