Dear Reader,

Today's overview of economic news and market action

• In line with market expectations, the ECB lowered official interest rates by 25bps yesterday …
• In the initial aftermath of the policy announcement, the euro came under some downward pressure …
• Elsewhere, the yen was on the back-foot, while the dollar was holding a slightly firmer tone …
• Meantime, sterling has been on the front foot in early trading following strong retail sales data released this morning …
• This sees EUR/GBP operating back near the 83p mark …
• EUR/USD is in the lower half of $1.08-1.09 …
• GBP/USD is in the top half of $1.30-1.31 …
• USD/JPY is up near the ¥150 mark …

All rates quoted are indicative market rates.

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.