Euro little changed vs. dollar ahead of Draghi speech

The euro was almost unchanged against the dollar on Thursday as investors positioned ahead of a speech by European Central Bank President Mario Draghi later in the trading day.

EUR/USD was trading at 1.3818, holding below the highs of 1.3853 reached in the previous session.

The pair was likely to find support at 1.3785, the low of April 22 and resistance at 1.3853.

Sentiment on the euro remained fragile after the ECB chief warned earlier this month that further gains in the currency would trigger additional monetary easing to keep inflation from falling.

Earlier this week, ECB Executive Board member Benoit Coeure said the bank still had room to lower its key interest rates and added that it was 'certain' that appreciation of the euro since mid-2012 had contributed to the low level of current inflation in the euro area.

The euro remained supported after data on Wednesday showed that the recovery in the euro zone private sector continued this month, but pointed to a divergence between Germany and France.

The recovery in Germany, the euro zone’s largest economy accelerated, with activity in both the manufacturing and service sector strengthening, but growth in the French private sector lost momentum.

The euro was lower against the yen, with EUR/JPY slipping 0.17% to 141.43, down from 141.65 on Wednesday.

Elsewhere, the dollar was also lower against the yen, with USD/JPY down 0.18% to 102.35.

The yen found support after Japanese Prime Minister Shinzo Abe said Thursday a trade deal with the U.S., an important element of his economic reforms, had still not been finalized and that bi-lateral talks were continuing.