ECB Cuts Rates 25 bps to 1.0% as expected then announce Bond Buy and GDP forecast cut

54 out of 58 analysts surveyed by Bloomberg expected the ECB to cut rates today by 0.25% or 25 basis points. 2 analysts expect them to hold rates steady at 1.25% and another 2-3* expected a bigger cut of 0.5% or 50 basis points (bps) to 0.75%

Some expected the EURUSD might sell off on this news, but the cut was highly expected and had been already priced into the market as we had already seen the EURUSD sell off from 1.3430 to 1.3380 before the rate announcement. So actually the EURUSD rallied on the announcment up 40 pips to 1.3320 into the 8:30am EST ECB Press Conference which saw the announcement of 2 further Bond Buying programs and we see the EURUSD then did rally into the 1.3340-50 area.

After this ECB then cut their GDP forcasts and the EURUSD sold off over 100 pips to 1.3310-15.

* Bloomberg reported 2 but talking-forex write said 3