On Thursday, the focus of global markets was on Bratislava where the ECB gathered to decide on monetary policy. The Bank cut its key interest rate by 25 basis points to 0.5%. EUR/USD lost more than one big figure as ECB’s Draghi committed to keep the Bank’s policy ultra-easy at least until mid 2014 and as the debate on a negative deposit rate was reopened. Intraday, the EUR/USD cross rate changed hands in the 1.3175 area at the start in Europe. So, the pair was well off Wednesday’s top even as the Fed kept the door open for additional asset buying. The euro was under moderate pressure early in the session as investors were cautious ahead of the ECB policy decision. The EMU April final manufacturing PMI stayed weak, but was marginally higher compared to the preliminary release.
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KBC