Euro Slumps as ECB Moves to Keep Recovery Momentum Going (FXE)
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The European Central Bank (ECB) aimed to keep Europe's recovery going by cutting its key lending rate to a new record low.
Earlier Thursday, the ECB trimmed its main refinancing rate by 25 basis points to 0.25 percent. The bank also lowered the rate it pays on bank deposits to zero and its emergency borrowing rate was also cut 25 basis points to 0.75 percent.
News today comes as October saw inflation in the euro-zone fall to 0.7 percent, while the ECB has a target of just under 2 percent.
ECB president Mario Draghi affirmed the bank's guidance and said European banks would be able to rely on as much liquidity as the bank's main refi operations would be left at a fixed rate with full allotment through July 2015.
On the news today, the euro is down over 1 percent to $1.3372. Consequently, the Guggenheim CurrencyShares Euro Trust (NYSE: FXE) ETF is down over 1 percent today, as well.
Earlier Thursday, the ECB trimmed its main refinancing rate by 25 basis points to 0.25 percent. The bank also lowered the rate it pays on bank deposits to zero and its emergency borrowing rate was also cut 25 basis points to 0.75 percent.
News today comes as October saw inflation in the euro-zone fall to 0.7 percent, while the ECB has a target of just under 2 percent.
ECB president Mario Draghi affirmed the bank's guidance and said European banks would be able to rely on as much liquidity as the bank's main refi operations would be left at a fixed rate with full allotment through July 2015.
On the news today, the euro is down over 1 percent to $1.3372. Consequently, the Guggenheim CurrencyShares Euro Trust (NYSE: FXE) ETF is down over 1 percent today, as well.
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