ECB Interest Rate Decision (ECB): The central bank cut interest rates by 25 basis points as expected!

The European Central Bank (ECB) has announced its latest interest rate decision, revealing a reduction in the interest rates by 25 basis points to 2.25%, down from its previous level of 2.5%.The decision follows a slight cooling in inflation to 2.2% in March, and amid a deteriorating economic outlook owing to rising trade tensions. The ECB warned that increased uncertainty is likely to reduce confidence among households and firms. The central bank added that inflation has continued to develop in line with expectations as it cooled to 2.2%.

EURO VS DOLLAR (EUR/USD):

If we take a closer look at the technicals, we can observe how price was trading just below 1.1360 before the news release, and post the release we have seen price fall to 1.1340. On the 4-hour chart, the price continues to trade within a holding pattern, with sellers looking for a break below 1.1260 and buyers looking for a break above 1.1425.

EURO STOXX 50 (EUR50):

The EURO STOXX 50 has seen little volatility from this ECB interest rate decision. Before the announcement, the price was trading at 4925. The price has since risen to 4935 after the announcement. On the 4-hour chart, the price trades in a rising triangle. A rise above 4975 is needed to break out. The market will seek more clarity from President Lagarde in the upcoming ECB conference.

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