3 min readThe European Central Bank (ECB) has announced its latest interest rate decision, revealing a reduction in the rate to 3%, down from its previous level of 3.25%. This development suggests the possibility of additional rate cuts in the new year. The decision follows a slight month-on-month increase in inflation, which rose to 2% compared to 1.7% in the prior month. Despite this, the ECB remains committed to maintaining inflation at its target of 2% and cutting interest rates as expected.
EURO VS DOLLAR (EUR/USD):
If we take a closer look at the technicals, we can observe how price was trading just below 1.0500 before the news release, and post the release we have seen price action push lower into the 1.04750 region. Marking a significant break in structure to the downside, and over 0.5% down on the day.
EURO STOXX 50 (EUR50):
The EURO STOXX 50 has also seen a direct impact from this ECB interest rate data result release, as we saw price trading at just below €4,964.00 before the announcement, and currently we are trading just above €4,973.00. Marking a slight increase of over 0.44% within the hour.
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