ECB Unexpectedly Cut Interest Rate to Record Low Levels

On Thursday, the ECB sent the markets into frenzy by declaring that they were cutting the interest rate to record low levels of 0.25 percent, down from an already low 0.5 percent.

Loses for the Euro Against a Basket of Currencies

Only last week the euro lost 2 cents against the dollar due to the release of October’s unemployment figures. For this reason, many investors and analysts will argue that the markets had already priced in an ECB rate cut as a result. An interest rate cut like this, however, was not expected so soon, with the majority of analysts predicting that such a cut would come in December at the very earliest.