FOREX-Euro falls as ECB holds rates; warns about economy
* Euro falls vs dollar after Trichet's comments
* ECB leaves rates unchanged as expected
* US weekly jobless claims rise more than expected
* BoE cuts rates to 1 percent (Adds comments, details, updates prices)
NEW YORK, Feb 5 (Reuters) - The euro fell against the dollar on Thursday as the European Central Bank warned that the euro zone was undergoing an extended downturn, although it stood pat on interest rates as widely expected.
ECB President Jean-Claude Trichet had previously hinted that markets should not expect a rate move at this meeting but signaled on Thursday that the central bank may resume its monetary easing cycle in March.
He also said at a press conference that zero interest rates were not something the bank considered "appropriate," and that helped limit euro losses. For details, see [ID:nECBNEWS]
In the United States, a report showed weekly jobless claims jumped to a 26-year high last week, another sign of deterioration in the labor markets. [ID:nN04302723] Continued...
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