Forex: EUR/GBP wavers after ECB cuts rates

FXstreet.com (Córdoba) - The euro reacted nervously to the ECB decision to cut the rate on the main refinancing operations by 0.25% to 0.5% in May. Even though the shared currency initially weakened and fell to a 2-day low of 0.8432 versus the pound, EUR/GBP – and other EUR crosses – quickly bounced.

All eyes will now turn to ECB President Mario Draghi, who will comment on the considerations underlying these decisions at a press conference starting at 12:30GMT.

EUR/GBP is currently trading around 0.8470, virtually unchanged on the day but 20 pips higher than it was before the ECB announcement.