EUR/USD under 1.3450 after News of Negative Rates

The resilient euro may have bounced back from this month’s interest rate cut from the European Central Bank (ECB), but recovering from talk that the ECB is mulling negative deposit rates could be much harder, analysts say.

A report on Wednesday from Bloomberg news cited two unnamed sources as saying the central bank was considering lowering its deposit rate, one of its two main lending rates, to below zero.

That knocked the euro down about 0.7 percent against the dollar, its steepest loss so far this month. And the single currency was still nursing its losses on Thursday as it hovered at $1.3426 in Asia trade.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.