Forex News and Rumors – Afternoon Update

Euro Gains on ECB Rate Cut and Pledge to Buy Debt

The euro made immediate gains on the dollar today after the European Central Bank cut lending rates by 25 basis points to a record low of 1 percent. The Bank also said it would inject cash into the financial system by buying bonds. More

Financials Pull Down Wall Street

Stock prices in New York today retreated from a four-month high due largely to declines in financial and telecommunications stocks. The long-awaited bank stress test results will be made public after the close today and the expectation is that several banks will be forced to acquire additional capital to bring funding levels to acceptable limits. More

China Warns EU To Avoid Protectionism

Just weeks ahead of a planned two-day summit between China and the European Union, China’s Vice Premier Wang Qishan cautioned Europe to ignore a growing sentiment to turn to protectionist measures as a way to revitalize the economy and save jobs. More

Oil Gives Up Gains

Crude oil for June delivery hit an intra-day high of $58 a barrel in New York today before slipping to $56.17 at 2:00 PM New York time. Oil has jumped of late despite higher-than-normal inventory levels. More

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