Forex News and Rumors

Bank of England Exceeds Rate Cut Expectations

The Bank of England exceeded all expectations by slashing interest rates by a percent and a half. This brings the lending rate to 3.0 percent – its lowest since 1955. More

Eurozone rates lowered to 3.25%

The bank has reduced rates by half a percentage point from 3.75% amid increasing signs of slowing growth. ECB president Jean-Claude Trichet said “exceptional challenges” lie ahead and inflation rates were set to go down. More

Euro Falls Against Dollar After Rate Cut Announcement

The euro weakened against the dollar in the aftermath of the European Central Bank announcing a fifty point cut in interest rates. ECB President Jean-Claude Trichet explained the cut was necessary in order to stimulate growth. More

Unwinding of Carry Trades Will Force Yen to Rise

Analysts predict that the Bank of Japan will be unable to prevent the appreciation of the yen as investors unwind carry trades. More

Economy worries push stocks lower

In Europe, indexes had been down more than 4% before both the European Central Bank and the Bank of England announced interest rate cuts. After the announcements UK’s FTSE 100 index, Germany’s Dax and France’s Cac 40 cut their losses to less than 2%. More

Asian Markets Retreat Sharply, and Europe Is Down

Asian stock markets retreated broadly on Thursday as investors shrugged off the excitement of Tuesday’s American presidential election, and European equities followed them lower despite another
round of interest rate cuts in Britain and the euro zone. Shares on Wall Street are expected to open lower after all three major exchanges fell more than 5 percent Wednesday.

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