By Boris Schlossberg
As expected ECB cut rates by 50 basis point taking the overnight rate below the 2% barrier for the first time since the euro began. With Eurozone economy contracting by -1.5% in the latest quarter and unemployment skyrocketing across the region, the generally hawkish central bank had no choice but to ease monetary policy further.
Attention will now turn to the 15:30 GMT press conference with traders eager to know if ECB will follow the path of BoE which just announced a 75 Billion GBP program of quantitative easing. In the past week a variety of ECB officials have hinted that the central bank may change its focus away from interest rate policy and towards quantitative easing.
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