Interest Rate Decisions Dominate Headlines ‐‐ But Is It News?

Well, the trend is certainly there. Central banks are cutting interest rates in a big way. The first two key news headlines above speak to that point. And of course, the Bank of England just announced a 100‐basis point rate cut this morning. The European Central Bank cut 75 basis points.

Heading into these two key decisions traders bid down both the pound and the euro. Selling pressure forced the British pound below key daily support but the price popped back up ahead of the announcement.