This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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.