The Euro dropped across the board yesterday, falling to news lows for the last 14 months against the US Dollar. The trigger event was of course an unexpected rate cut from the ECB. To encourage stimulus in the Euro, it dropped the refinancing rate to 0.05, the lowest ever since the single currency came into play.

Mario Draghi announced the plan to buy a large portfolio of asset backed securities as of October. His actions show a clear plan to weaken the Euro and stimulate trade, thus trying to lower inflation. Whether it works out for the Euro, time will tell.

Today, as we await the Non Farm Payrolls data, the European single currency remained low against the greenback at 1.3148 dollars. Note, however, that it remains close to the 12 month low, reached on Monday at 1.3110.

Traders in the Euro welcomed the news that Ukrainian President Petro Poroshenko is looking at an agreement for ‘permanent cease-fire’ with Russian President Vladimir Putin.

The US Non Farm Payroll data expected today at 13:30 in the UK is expected to fall in at 229k, a larger forecast figure than the 209k actual result last month.