- ECB cuts rates to 0.25% from 0.50% previously, deposit facility rate remains at 0.00%
- EUR crosses take a hit and continue to move lower ahead of Draghi’s press conference
The European Central Bank surprised market participants Thursday morning by cutting its key benchmark interest rate to 0.25% from 0.50% previous. Despite improved confidence data out of the Eurozone and continued optimism by ECB officials, European CPI last Thursday came in far below estimates and certainly put pressure on central bank officials to take action.
EUR/USD (30-Minute Chart)
Source: FXCM Marketscope
As the clock hit 12:45:00 GMT, the print had yet to come out. Euro crosses started to take a massive turn towards the downside regardless. As soon as the delayed print of 0.25% was finally released, the Euro continued its trend towards the downside. Market participants will be looking to Mr. Draghi’s press conference at 13:30GMT.
Gregory Marks, DailyFX Research Team
Keep up to date on event risk with the DailyFX Calendar.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.