LONDON, July 18 (Reuters) - The euro held steady on

Thursday, as did euro zone government bond yields after the

European Central Bank left interest rates unchanged, and did not

signal a cut in September was imminent.

The euro was last at $1.09325, having traded

around $1.09278 earlier. Against the pound, the euro

was up 0.12% on the day at 84.20 pence, compared with 84.175

pence ahead of the ECB decision.

President Christine Lagarde delivers a press conference at

1245 GMT that could shed more light on the details of the

central bank's decision and policymakers' thinking on the likely

path for interest rates.

German two-year bond yields, the most sensitive

to changes in expectations for interest rates, were up 1.3 basis

points on the day at 2.789%, unchanged from where they had

traded prior to the decision.

The gap between two- and 10-year yields

narrowed a touch to -34.9 bps from -35.3 bps previously.

European stocks were up 0.4%.