Euro Weakens on ECB Rate Cut Discussions
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The European Central Bank might see more weakness then originally let on Thursday, after affirming it would retain its key benchmark rate at 0.75 percent earlier in the session.
Reports out Friday have the Governing Council and President Mario Draghi having a "wide discussion" over potential rate cuts at its latest gathering. The news has pressured the euro this morning, which is down 0.4 percent to $1.2905 at last check.
The ECB also added a six-month extension to its full-allotment policy on all liquidity operations.
Lending rates between banks have fallen markedly since the ECB announced plans to perform open market operations last November.
Reuters notes Friday that three-month Eurobor rates fell 0.03 points to 0.187 percent.
Traders will be keeping an eye on CurrencyShares Euro Trust (NYSE: FXE) on the news today.
Reports out Friday have the Governing Council and President Mario Draghi having a "wide discussion" over potential rate cuts at its latest gathering. The news has pressured the euro this morning, which is down 0.4 percent to $1.2905 at last check.
The ECB also added a six-month extension to its full-allotment policy on all liquidity operations.
Lending rates between banks have fallen markedly since the ECB announced plans to perform open market operations last November.
Reuters notes Friday that three-month Eurobor rates fell 0.03 points to 0.187 percent.
Traders will be keeping an eye on CurrencyShares Euro Trust (NYSE: FXE) on the news today.
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