7 Nov 2013
EUR/JPY crumbles after ECB cuts rates
FXstreet.com (Córdoba) - The EUR/JPY slumped and hit a fresh 1-month low after the European Central Bank unexpectedly cut its main interest rate to a fresh record low of 0.25%.
The euro was crushed across the board and fell over 150 pips against the yen to hit a low of 131.88, last seen Oct 10. Against expectations, the ECB decided to cut its main interest rate and the lending facility rate by 25 basis points Thursday. All eyes are now on Draghi's press conference starting at 13.30GMT for an explanation of the central bank's surprising decision.
EUR/JPY is currently trading at 131.95, 1.0% below its opening price, from 133.30 right before the ECB. Immediate support is now seen at 131.48, which is the 100-day SMA.
The euro was crushed across the board and fell over 150 pips against the yen to hit a low of 131.88, last seen Oct 10. Against expectations, the ECB decided to cut its main interest rate and the lending facility rate by 25 basis points Thursday. All eyes are now on Draghi's press conference starting at 13.30GMT for an explanation of the central bank's surprising decision.
EUR/JPY is currently trading at 131.95, 1.0% below its opening price, from 133.30 right before the ECB. Immediate support is now seen at 131.48, which is the 100-day SMA.