Surprise action from the ECB hit the EUR-complex
The ECB cut all three rates by 10 basis points through a surprise decision in September meeting; the main refinancing rate has been lowered to 0.05%, the marginal lending rate to 0.30% and the deposit facility rate to -0.20%. Additionally, Mr. Draghi introduced strengthening of the monetary stimulus measures including ABS and covered bond purchases to begin on November 2014. EUR-complex aggressively sold-off postannouncement, EUR/CHF tumbled down to 1.20449, fueling speculations that the SNB would react if 1.20 floor comes at risk.
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