My picks: Short EUR/GBP
Expertise: Global Macro
Average Time Frame of Trades: 1 week
This Thursday, the European Central Bank cut its benchmark interest rate by 25 bps to 1 percent. In addition to the reductions in interest rates, the Governing Council of the ECB also decided to proceed with its enhanced credit support approach, the ECB said. Looking ahead, “current key ECB interest rates are appropriate taking into account all available information and analysis”. The euro reacted positively to the rate announcement and I expect more upward pressure in the EUR/GBP going forward.
