EUR interest rate and its influence

Hi, I'm a new live trader. Anyone might suggest the influence on a lowering of EUR interest rate from BCE (from 1.25 to 1%) forecasted for tomorrow on EURUSD? Last time Eur went up a lot. ANY time the rate is lowered the currency (EUR) price will raise? or other scenario may happen?

Thank a lot

I dont mean to be rude but maybe you shouldn't be live trading if you dont know this or dont know where to find this type of information. Last time the rate was cut less than forecasted so despite it being cut it gave a boost to the market. Generally when rates are cut this is negative for the currency but this is often factored in to the market already.

the market response to any announcement is completely unpredictable. I also dont mean to be rude but Your account is as good as toast if you think you can trade news with no knowledge or experience.

More important than the rate cut (which is priced in) will be the press conference and the measures they want to take. Will they introduce quantitative easing? IMO they can't because the ECB can't act like the FED (which is a good thing IMHO).

I agree with Xaron. The one to watch is the 12:30 GMT Trichet press conference (about 5minutes from now).
ECB not going into QE will bouy Euro against other currencies, specially those that have embraced QE, mainly USD & GBP.
Still, nobody know, so let's see.... 5minutes to go

12:38 EUR ECON: ECB Goes Non-Standard...Buys Covered Bonds May 7, 2009
ECB decided to proceed with enhanced credit support and the liquidity
operations have been extended to 12-months from 6-months. Also on credit easing the ECB has decided to purchase Euro denominated covered bonds.
[email protected]


Non-standard measures as mentioned before...