Investing.com - The euro fell sharply against the other main currencies on Thursday after the European Central Bank surprised markets by cutting its benchmark interest rate to a record low 0.25% from 0.5%.
EUR/USD hit 1.3355 during European afternoon trade, the lowest since September 18; the pair subsequently consolidated at 1.3363, down 1.11%.
The pair was likely to find support at 1.3243, the low of September 11 and resistance at 1.3400.
The euro dropped after the ECB said it was lowering its benchmark interest rate to a record-low 0.25% in an unexpected decision. The bank also cut its marginal lending rate to 0.75% from 1% and left its deposit facility rate unchanged at 0.0%.
The decision came after data last week showed that euro zone annual inflation fell to a four year low of 0.7% in October.
ECB President Mario Draghi was to speak at the bank’s post-policy meeting press conference later in the session.
The euro fell to one-month lows against the yen, with EUR/JPY dropping 0.95% to 132.05.
Elsewhere, the shared currency hit 10-month lows against the pound, with EUR/GBP down 0.89% to 0.8330.
The Bank of England’s monetary policy committee voted to leave rates on hold at 0.5% following its meeting on Thursday and made no change to the GBP375 billion quantitative easing package.
EUR/USD hit 1.3355 during European afternoon trade, the lowest since September 18; the pair subsequently consolidated at 1.3363, down 1.11%.
The pair was likely to find support at 1.3243, the low of September 11 and resistance at 1.3400.
The euro dropped after the ECB said it was lowering its benchmark interest rate to a record-low 0.25% in an unexpected decision. The bank also cut its marginal lending rate to 0.75% from 1% and left its deposit facility rate unchanged at 0.0%.
The decision came after data last week showed that euro zone annual inflation fell to a four year low of 0.7% in October.
ECB President Mario Draghi was to speak at the bank’s post-policy meeting press conference later in the session.
The euro fell to one-month lows against the yen, with EUR/JPY dropping 0.95% to 132.05.
Elsewhere, the shared currency hit 10-month lows against the pound, with EUR/GBP down 0.89% to 0.8330.
The Bank of England’s monetary policy committee voted to leave rates on hold at 0.5% following its meeting on Thursday and made no change to the GBP375 billion quantitative easing package.