USD stronger as ECB cuts interest rates

The European Central Bank today cut Eurozone interest rates to 1% ahead of tomorrow’s crucial EU summit. While this, and the accompanying luke-warm support from the ECB to the proposed debt crisis plans, weakened the Euro, the Bank of England decided not to extend its Quantitative Easing programme this month, giving the Pound some support. The net result has been better rates for sending Euro payments, but rates for buying US Dollars have dropped a cent. This is due to the Euro weakness as well as better-than-expected US jobless claim figures. Against other currencies sterling is broadly ‘as you were’. Tomorrow’s crucial EU summit is likely to bring volatility to all currencies, so do make sure you contact us at Currency Index if you would like us to update you with any spikes in exchange rate through the day.