European Central Bank President Mario Draghi speaking in Rome after a scheduled speech said last week's ECB rate cut had been due to the economic slowdown affecting the core Eurozone countries.
He said that governments should "mitigate the impact of austerity on growth" and he repeated what he said in the press conference last Thursday after the ECB 25 basis point rate cut to 0.5%, that the ECB is ready to act again if needed.
The euro dropped 25 points against the dollar from 1.3105 to 1.3080 in the minute after the comment and the eur/yen fell from 130.17 to 129.92. Both have continued lower.
Current levels eur/usd 1.3061, euryen 129.72 10:55 am ET
Chief Market Strategist