Dear Reader,

Today's overview of economic news and market action

• The cautious tone to investor sentiment persisted yesterday …
• Currency-wise, the main pairs continued to operate in very narrow trading ranges …
• Of the limited moves to note, the dollar remained in the ascendancy …
• Meanwhile, the yen was under downward pressure overnight …
• EUR/USD opens down at the $1.08 level …
• GBP/USD is changing hands back below the $1.30 threshold …
• USD/JPY is operating above the ¥152 handle …
• EUR/GBP remains in the lower half of 83-84p …
• Remarks from a number of central bank officials will warrant attention today …

All rates quoted are indicative market rates.

Growth concerns driving the ECB

The ECB policy meeting for October marked a firm shift in the focus of the Governing Council away from inflation 
towards growth concerns in the Eurozone. As outlined in our ECB Watch publication, the central bank cut interest rates 
for a third time this year. It reduced rates by 25bps, with the Deposit rate lowered to 3.25%, while the Re-fi rate was 
decreased to 3.40%.

The October meeting of the ECB’s Governing Council saw the central bank cut interest rates for a third time this year. It reduced rates by 25bps, with the Deposit rate lowered to 3.25%, while the Re-fi rate was decreased to 3.40%. Today’s policy easing represents the first consecutive rate cuts from the ECB in 13 years, as it also lowered rates at its previous meeting in September.