Euro pares losses from ECB rate cut, Dow falls

Twitter’s price has surged on its market debut, but overall US shares have moved lower today, while the euro has moved rapidly today following a surprise cut in rates by the ECB.

Earlier today the euro tumbled against its peers, following the ECB’s largely unexpected move to lower its benchmark interest rate to 0.25%, a record low.

EUR/USD hit a low of 1.3295, as the move by the central bank prompted a wave of euro selling, but the shared currency has recovered somewhat as the day has progressed, recouping some of its losses to stand at 1.3427 by early afternoon in New York, representing a drop of 0.64% on the day.

You know something unusual must be up if a currency dumps against the euro on such a day, and that is precisely the case with the Czech koruna, which fell a record amount against the euro after the Czech National Bank made its first intervention in the forex markets in over a decade, acting to weaken its currency in a bid to boost falling inflation.

Governor Miroslav Singer said that the central bank was ‘in for the long term’, adding that ‘the question is not whether we stop in 2014, it is rather a question if it will be enough.’ EUR/CZK was up 4.8% at one point, the biggest one-day gain for the currency pair on record.

Twitter‘s IPO went smoothly on the New York Stock Exchange today, opening well above its IPO price. By early afternoon on Wall Street, it was standing at $46.80 a share, some 80% higher than the IPO price of $26.

Despite the risk appetite demonstrated by investors for Twitter, US shares have slipped back today from their recent record highs. The Dow dropped 0.36% to 15,690, while the S&P 500 fell 0.82% to 1755.9.

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