ECB lowers all benchmark rates by 0.25%-EUR/USD lifts

As was almost 100% expected by the markets, the European Central Bank (ECB) has just decided to lower all their main benchmark rates by 0.25%. That takes the main refinancing to 4.25%, from 4.5%. The marginal lending facility has been reduced to 4.5%, from 4.75% and the deposit facility rate is now at 3.75%, from a prior level of 4%. Ahead of this decision the EUR/USD was edging lower and had hit a new session low at 1.0862. The impact of this expected rate cut has seen the Euro mostly unmoved in the first few seconds afterwards. The ECB says they will take a meeting by meeting approach as to further action. The EUR/USD is now rising, currently trading at 1.0877