The European Central Bank cut its benchmark Minimum Bid Rate by 0.25% to 1%, as expected. The new president of the ECB, Mario Draghi, fully reversed the rate hikes made by his predecessor Jean-Claude Trichet earlier in the year. EUR/USD traded just above 1.3380 before the release, at the lower end of the 1.3360 and 1.3420 lines. EUR/USD moves up to 1.34. Update: the 1.3420 line caps the pair for now. See the live blog of the press conference. Some market participants discussed a bigger rate cut, but the chances were very low. The ECB doesn’t tend to make big moves, and it never had an interest rate lower than 1%. It held the 1% rate for around two years until April’s hike by Trichet. The focus of the market now shifts to the press conference, in which Draghi will probably introduce new measures to shore up banks: extended loans and easier collateral rules. Will the president of the ECB announce a larger scale of bond purchases (Quantitative Easing) and be “Super Mario”? Or will Draghi be a drag on the markets? See the ECB Preview for details. Earlier today, a report about a circular IMF loan worth 150 billion euros floated. This is certainly not enough. For more on the single currency, see the euro dollar forecast. Inflation remains elevated at 3%, but the current governing council of the ECB also looks at the underlying economies, and sees a grim picture of a recession. In addition, the debt crisis is spilling into the real economies of all euro-zone countries, and actually all the world. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next Draghi Announces Easy Three Year Bank Loans, No QE – Yohay Elam 11 years The European Central Bank cut its benchmark Minimum Bid Rate by 0.25% to 1%, as expected. The new president of the ECB, Mario Draghi, fully reversed the rate hikes made by his predecessor Jean-Claude Trichet earlier in the year. EUR/USD traded just above 1.3380 before the release, at the lower end of the 1.3360 and 1.3420 lines. EUR/USD moves up to 1.34. Update: the 1.3420 line caps the pair for now. See the live blog of the press conference. Some market participants discussed a bigger rate cut, but the chances were very low. The ECB doesn't tend to make big… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.