Following days of anticipation, the euro moved with the tide of sentiment expressed by the European Central Bank (ECB) yesterday.
The central bank cut rates, as expected, slashing its benchmark interest rate to 0% and dropping the deposit rate to -0.4%. It also extended its bond purchases by €20 billion, from €60 billion to €80 billion per month. The announcement initially caused the euro to nosedive, as is usually the case when monetary policy is introduced or extended. However, ECB President Draghi detailed that the central bank does not expect to cut interest rates further following today’s round of cuts, news which helped support the euro and saw it strengthen significantly.
Friday sees German inflation data due. Other than that, markets are likely to be absorbing yesterday’s news.
If you are looking to buy or sell euro, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.