EURUSD Plunges On ECB Decision

It's the announcement that everyone was expecting. But, just not this pessimistic. Following their decision to leave interest rates on September 8th unchanged at 1.50%, European central bankers revealed two major reasons behind their decision this time around. And, it's not very promising. As with other central banks in recent days, ECB officials kept rates unchanged on the increasing risks being posed by the current European debt crisis. This week alone, central banks in Australia, Sweden and Korea kept rates steady. Although no real news has been released to worsen the public opinion over the European situation, the fact that politicians still haven't offered a solid solution has sparked concern among global financial leaders. It also doesn't help that insurance on potentially defaulting nations has risen in the past week – along with bond yields in Italy and Spain, the region's third and fourth largest economies. Without a real strategy for resolution, the specter of default and full financial collapse in the EU will continue to mess with monetary policy both in and out of Europe for the months to come. Read the article here - http://forexalliance.com/2011/09/eurusd-plunges-ecb-decision/