Forex News: Euro Falls As ECB Cuts Interest Rates Again

Euro Falls As ECB Cuts Interest Rates Again

(RTTNews) - The euro declined against its most major counterparts in the New York session on Thursday, as the European Central Bank slashed its key interest rates by a quarter basis point and warned of 'deteriorated' growth outlook due to trade tensions.

The Governing Council, led by ECB President Christine Lagarde, cut the deposit rate by 25 basis points to 2.25 percent.

The main refinancing rate was lowered by similar volume to 2.40 percent and the marginal lending rate to 2.65 percent.

"Most measures of underlying inflation suggest that inflation will settle at around the Governing Council's 2 percent medium-term target on a sustained basis," the ECB said.

"The euro area economy has been building up some resilience against global shocks, but the outlook for growth has deteriorated owing to rising trade tensions," the bank added.

The euro fell to 1.1334 against the greenback and 1.7766 against the aussie. The currency is poised to challenge support around 1.10 against the greenback and 1.65 against the aussie.

The euro dropped to a 2-day low of 1.5699 against the loonie, 1-week low of 161.24 against the yen and a 2-week low of 1.8998 against the kiwi, from an early high of 1.5807 and 2-day highs of 162.64 and 1.9260, respectively. The currency may challenge support around 1.53 against the loonie, 157.00 against the yen and 1.82 against the kiwi.

The euro weakened to 0.8555 against the pound, from an early 3-day high of 0.8617. If the currency falls further, it is likely to test support around the 0.84 region.

In contrast, the euro climbed to a 3-day high of 0.9338 against the franc. The currency is seen finding resistance around the 0.95 level.

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