Euro Crumbles as ECB Cuts Key Rate to Record Low of 0.25%

Thursday has been a day jam packed with first tier economic releases, the highlight being the surprise rate cut from the ECB.
Bank of England Keeps Rate at Record Low
The pound softened modestly against the US dollar after the Bank of England said said its Monetary Policy Committee maintained the key policy rate at a record low of 0.50 percent and retained the size of its bond-buying stimulus program at £375 billion. The news came out in line with analyst expectations.

European Central Bank Cuts Key Rate Amid Deflation Fears
The European Central Bank cut its benchmark interest rate to a record low of 0.25 percent amid increasing concerns over deflation. Last weeks news that eurozone inflation fell to 0.7 percent in October, substantially below the ECB target of just under 2 percent had raised speculation over the possibility of an imminent rate cut.
The ECB held its deposit rate at zero and reduced the marginal lending rate to 0.75 percent.
The Euro spiked sharply lower on the news of the surprise rate cut, with the EUR/USD later seeing losses of over 200 pips on the day.

US GDP Beats Expectations

Thursdays GDP report from the Commerce Department showed that the US economy grew 2.8% at an annualized pace in Q3, rising from Q2's 2.5% pace of growth and exceeding analyst expectations of 2.0%. US stock index futures advanced in the wake of the positive news.

US Weekly Jobless Claims came in roughly in line with expectations at 336K falling from the prior weeks revised reading of 345K.

The strong economic data out of the US caused EUR/USD to extend its losses, reaching down to the 50% retracement of its recent upmove as shown on the daily chart. EUR/USD is still trading above the 200 day moving average, providing support around the level of 1.3219.

EUR/USD Daily Chart