4 min readThe European Central Bank (ECB) has announced its latest interest rate decision, revealing a reduction in the interest rates by 25 basis points to 2.75%, down from its previous level of 3%. This development suggests the possibility of additional rate cuts in the coming year. The decision follows a slight month-on-month increase in inflation, which rose to 2.4% compared to 2.2% in the prior month. Despite this, the ECB remains committed to maintaining inflation at its target of 2% and cutting interest rates as expected.
EURO VS DOLLAR (EUR/USD):
If we take a closer look at the technicals, we can observe how price was trading just below 1.04050 before the news release, and post the release we have seen price action push higher into the 1.04200 region. Marking no real significant breaks in structure, as we continue to trade within this current range between the lows of 1.03850 and 1.04300.
EURO STOXX 50 (EUR50):
The EURO STOXX 50 has also seen a direct impact from this ECB interest rate data result release, as we saw price trading at just below €5,285.00 before the announcement, and currently we are trading just above €5,284.00. Marking pretty much little to no reaction from the index as the market looks for more certainty in the upcoming ECB conference.
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