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US markets advance on better jobs data, ECB rate cut

FXstreet.com (Barcelona) - Shares in the US markets are posting strong gains on Thursday and recovering ground from yesterday’s sell-off, as multi-year lows in the US labour market and the increased easing bias in the euro area are propping up the sentiment. In addition, the US Dollar Index is pushing higher, printing fresh intraday highs in the area of 82.30/40 as the exodus from the risk-associated currencies continues to swell.
DowJones is advancing 0.75%, followed by the Nasdaq and the S&P500, up 1.18% and 0.86%, respectively.

Bourses in Euroland closed with gains with the exception of the Spanish benchmark, down 0.15% for the day. The ECB decision to lower the refi rate to 0.50% was the catalyst for the upside, with the DAX gaining 0.61%, followed by the FTSE100, 0.15% and the CAC40, 0.05%.
Bad day for the single currency after the ECB cut the repo rate by 25 bp, in line with market expectations. The selling interest accelerated after President Draghi left the door open for negative deposits rate should the conditions in the euro area deteriorate further.

In the commodities realm, both the barrel of WTI and the ounce troy of gold are paring recent losses, advancing 2.38% at $93.20 and 1.54% at $1,468, respectively.

Euro crushed by prospects of negative deposit rates

The euro slumped on Thursday after the European Central Bank cut rates as expected and left the door opened to negative deposit rates if the data deteriorates. In a press conference, President Mario Draghi said the bank is technically ready for negative deposit rates and noted downside risks to the economy.
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Forex: GBP/USD bounces from lows

After dipping below the 1.5500 mark and hitting a 2-day low, the Cable managed to bounce and has recovered some ground within the last hours as investors now position for the NFP report.
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