Forex headlines for May 2, 2013:
- ECB lowers main refi rate to 0.50% from 0.75%
- ECB cuts marginal lending rate by 50 bps to 1%
- Draghi says ECB has open mind on negative deposit rates
- Many ECB council members were ready for bolder moves – MNI
- Stephen Poloz named new Bank of Canada Governor
- Initial jobless claims 324k vs 345k exp
- US trade deficit 38B vs 42B exp
- Canadian trade balance March: $0.02B vs -$0.72B exp
- Italy April deficit €11B vs €2.025B in April 2012
The immediate knee-jerk in EUR/USD following the ECB rate cut was down to 1.3117 but it almost immediately rebounded to 1.3215. It was bouncing around 1.3200 when Draghi hinted at negative deposit rates in the press conference and that caused a fast move down to 1.3060 and eventually, a low of 1.3037.
Gold liked the ECB rate cut as it climbed $10 to $1467 after touching as high as $1473.
