Euro Gains on Rate Cut

The European Central Bank reduced official interest rates by 25 basis points.

The market speculation was for a 50 basis point cut, so the reaction was Euro positive.

Trichet’s comment suggested that the next move was data dependant, but there was a hint that the ECB may move away from rate cuts and move into other methods of increasing liquidity.

The EUR/USD remains poised to head either direction. The NonFarm Payroll report could be the decider.