By Aaron Hankin
May seeks Brexit extension at EU Summit meeting
The euro on Wednesday traded mostly unchanged against its major pairs, recovering most of its earlier losses after the European Central Bank, as expected, made no changes to monetary policy.
The ECB left key interest rates steady and repeated that it plans to hold them at current levels at least through the end of the year , while also repeating that it plans to continue reinvesting the principal payments from its recently completed bond-buying program for an "extended period" beyond when it does deliver a rate increase.
As expected, the ECB remained downbeat on the economic outlook for the area. "The risks surrounding the euro area growth outlook remain tilted to the downside, on account of the persistence of uncertainties related to geopolitical factors, the threat of protectionism and vulnerabilities in emerging markets," Draghi said.
He added that details of the targeted longer-term refinancing operations, or TLTROs, will be communicated at one of the central banks coming meetings.
Still the ECB chief said the chances of a recession in the euro area remain low, responding to a question at the central bank's news conference.
Read:ECB introductory statement (https://www.ecb.europa.eu/press/pressconf/2019/html/ecb.is190410c27197866f.en.html)
The euro was last changing hands at $1.1268, compared with $1.1262 late Tuesday.
Elsewhere in Europe, embattled U.K. Prime Minister Theresa May is meeting with European officials in an attempt to push the Brexit deadline back to June 30, after the EU Parliament meetings. However, EU Council President Donald Tusk has hinted at a longer extension to avoid further emergency-like meetings.
"It's very unlikely though that an offer won't be forthcoming, it's just a question of how politically painful it will be for the prime minister because with Parliament committing her to an extension and the current deadline two days away, she doesn't have many options," wrote Craig Erlam, senior market analyst at Oanda.
If a deal isn't struck, the default position is for the U.K. to leave the EU on Friday without a deal.
The British pound was trading higher versus the greenback at $1.3098, up 0.4%.
Further reading:Opinion: Brexit: What it means for U.S. banks, car makers, drug companies
In U.S. economic news, March inflation numbers showed consumer prices grew at a 0.4%, in line with economists polled by MarketWatch.
The ICE Dollar Index was a little lower on Wednesday, trading at 96.955. The dollar is trying to avoid a 3-day skid.
To round off a busy day on the calendar, the Fed will release the minutes of its March policy meeting at 2 p.m.