Central Banks slash rates aggressively

15:30 GMT
The European Central Bank, the Bank of England, the Bank of Sweden and the Bank Of New Zealand have all aggressively slashed their borrowing cost, as an attempt to support the  global economy

The ECB has slashed interest rates by 0.75%    today  ,more than the 0.5% which was expected by most market participants.
However, the EURUSD did not react as expected, and is actually maintaining strength during the first hours of the New-York session.

The Bank of England has slashed rates by 1% on the pound ( from 3%) , as a result the sterling sank to a new low of 1.4467 against the Dollar this morning,  However this pair has also recovered losses since then, and is now well above 1.4600.

Maybe the reaction of the market to the events today can be regarded as a sign that all these rate cuts where already priced in the market prior to the their actual release. This would explain why the EURUSD is trading around 1.27 up from 1.2550 this morning despite the fact the ECB’s 0.75%. cut.

If this is truly the case, the Euro might be able to keep it’s head above the water for the time being.

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