ECB Rate Cut Leads To Euro Sell-Off

November 7, 2013

After being stuck in a trading range for the past couple of days, the euro finally broke out to the downside and fell hard against the dollar after the ECB rate announcement.

Markets were caught by surprise after the ECB lowered its main interest by a quarter percentage point to a record low 0.25 percent from 0.5 percent. Soft inflation in the Eurozone was the main culprit.
The euro slid by over 130 pips immediately after the news and then continued lower as the US session came around. Also ECB President Mario Draghi began to speak at a press conference and was already sounding dovish.

EURUSD ended the European session with a 1.13 percent loss, ending at $1.3370. EURJPY fell 1 percent to 132.03.

The Bank of England announced its monetary policy just before the ECB and left its benchmark rate unchanged at 0.50% and its asset purchase program 375 billion pounds.

GBPUSD slid to a session low of $1.6017 before ending at $1.6042, losing 0.2 percent.

The dollar rose against the yen, to end the European session at 98.74. US GDP data as well as US jobless claims were released as the US session came around and strong GDP data boosted USDJPY to above the key 99.00 level, towards 99.35.

Publication source
FxNet information  FxNet reviews

December 9, 2016
Euro slips as ECB extends QE by 9-months
The single currency was weaker after the European Central Bank decided yesterday that it would continue with its bond purchases program. The ECB extended its QE plans from March 2017 to the end of the year...
December 9, 2016
The global stock market rally
The global stock market rally, which was underpinned by further ECB stimulus measures yesterday and a rise in oil prices, continued in Asia overnight, with most markets moving higher...
December 9, 2016
Markets throw caution to the wind
Markets have thrown caution to the wind when it comes to movements as of late as once again US equities set the scene with another stellar rise, though not as big as yesterdays...

FXCM Rating
XM Rating
Fort Financial Services Rating
FxPro Rating
Z.com Trade Rating
Vantage FX Rating

EZTrader Rating
Banc De Binary Rating
OptionBit Rating
OptionsXO Rating
TopOption Rating
OptionFair Rating