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Investing.com - The dollar rallied over 1% against the other major currencies on Thursday, after the European Central Bank cut interest rates across the euro zone to new record lows and boosted its quantitative easing program. EUR/USD tumbled 1.52% to 1.0833. The ECB wrong footed markets by cutting its benchmark interest rate to a record-low of zero from 0.05%. Market watchers had been expecting no change. The central bank also cut the deposit facility rate deeper into negative territory, to minus 0.4% and cut the marginal lending rate cut to 0.25% from 0.30%. In addition, the ECB boosted its quantitative easing program by €20 billion per month to €80 billion, starting in April. The bank also said investment grade euro-denominated bonds would become eligible for purchases under its asset purchase program. ECB President Mario Draghi was to outline the factors affecting the monetary policy decision at the post-policy meeting press conference later Thursday. At the same time, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending March 5 decreased by 18,000 to 259,000 from the previous week’s total of 277,000. Analysts expected jobless claims to fall by 2,000 to 275,000 last week. USD/JPY gained 0.91% to 114.36. The dollar also moved higher against the pound and the Swiss franc, with GBP/USD down 0.63% at 1.4127 and with USD/CHF rallying 1.16% to 1.0091. Earlier Thursday, British Prime Minister David Cameron warned PM Cameron warns of sterling pressure if Britain leaves EU By Reuters - Mar 10, 2016 LONDON (Reuters) - A British exit from the European Union would put pressure on sterling, Prime ... that a U.K. exit from the European Union would put pressure on sterling. Meanwhile, the Australian dollar was lower, with AUD/USD down 0.23% at 0.7467, while NZD/USD held steady at 0.6654. The kiwi recovered from earlier losses posted after the Reserve Bank of New Zealand unexpectedly lowered its benchmark interest rate to 2.25% from 2.50% and signaled the possibility for further rate cuts to come. USD/CAD gained 0.39% to 1.3297. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 1.23% at 98.40, the highest since March 2.
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