Foreign Exchange Daily Market Update 11/03/2016

Fri, March 11, 2016

Draghi Strengthens Euro After Cutting Rates

ECB chief Mario Draghi released a bold easing package on Thursday, cutting rates and expanding asset buys which weakened the Euro against the Pound and the Dollar. However he undid the very stimulus he hoped to achieve by suggesting there would be no further cuts.

This drove the Euro to unwanted gains versus the Dollar and prompted criticism from some that Draghi had once again botched his communication.

The ECB raised monthly asset buys to 80 billion Euros from 60 billion Euros and cut its main refinancing rate to zero from 0.05%. It also cut its deposit rate by 10 basis points to -0.4% and cut the marginal lending rate to 0.25% from 0.3%.

Yesterday Sterling soared to 1.3059 against the Euro before the press conference in which Draghi stated that he doesn’t anticipate more rate cuts based on his current view. After this statement Sterling fell to 1.2791. The Pound rose against the Dollar to 1.4308.

Data to look out for today.

Not Much Data Out Today

CURRENCY PAYMENTS MADE SIMPLE

PRESS RELEASE

KBRFX was mentioned in the Essex Chronicle for the top 100 companies by turnover in Essex http://www.essexchronicle.co.uk/100-Essex-businesses-revealed-annual-survey/story-25140555-detail/story.html

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