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Forex: EUR/USD slumps on Draghi's deposit rate comments

FXstreet.com (Córdoba) - The euro slumped to fresh daily lows sub-1.3100 against the dollar in choppy action after ECB President Mario Draghi said the bank is technically ready for negative deposit rate if it decides to act. Draghi highlights that the ECB will look at this with "open mind".

EUR/USD dropped over 100 pips after the remarks and dipped below the 1.3100 mark to hit a low of 1.3076 so far. Currently the pair is trading around 1.3090/1.3100, now down 0.6% on the day, having hit a high of 1.3218 less than an hour ago.

ECB’s Draghi leaves door open for further rate cuts

The ECB Governing Council decided to cut the main interest rate by 25 basis points to 0.5% at their May monetary policy meeting. During the subsequent press conference the ECB head Mario Draghi also assured that the ECB “stands ready to act” should a need for further rate cuts arise.
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Forex: EUR/GBP retraces gains and collapses to 0.8410

After reacting first to the upside following the ECB rate decision, the EUR/GBP has retraced all initial gains and currently it is trading lower with the pair falling around 70 pips from 0.8480 to break below the 0.8440 and reach fresh lowest since April 29 at 0.8410.
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