The euro stabilized against the dollar on Thursday, after starting the session sharply lower and the day after a central bank meeting that strengthened the greenback.

Around 09:05 GMT (11:05 in Paris), the euro lost 0.07% against the US currency, at 1.1808 dollar, erasing the majority of the losses recorded during the Asian session. The day before, it had finished lower.

The U.S. Federal Reserve (Fed) left interest rates unchanged, as expected, but was more optimistic than expected, pulling the dollar.

The recession will be less severe than expected and employment is expected to recover faster, the monetary institute said. However, the pace of recovery in the United States is "highly uncertain," fed chairman Jerome Powell acknowledged.

"There were no real surprises in the Monetary Policy Committee's announcements, and it's somewhat surprising that stocks fell and the dollar appreciated slightly," Halley said. analyst for Oanda.

The rise "is another indication that a lot of bad news had been priced in the dollar," making the positive news all the more striking, added Lee Hardman, an analyst for MUFG.

Later in the day, investors will take note of the decision taken at the end of the Bank of England meeting held yesterday, against a backdrop of brexit tensions.

If no change in monetary policy is expected on Thursday, the majority of observers believe that the institution will open the door to future monetary easing by the end of the year.