The ECB cut the interest rates yesterday from the prevailing 1% to 0.75% in order to boost the struggling Eurozone economy. The ECB also decided to cut the bank’s overnight interest rate to zero. China as well surprised the markets by slashing the interest rates. Bank of England announced to restart their asset purchase program by £50 billion spread across four months. The British pound was declining, trading at $1.5509 to $1.5606 375.

The concerted efforts by the Central banks is clearly seen as a move to boost the global economic slowdown.

Against the USD, the Euro dropped on Thursday as the single currency hit a lowest level in a month reflecting investor sentiment in response to the ECB’s decision to reduce the interest rates. The Euro fell by over 1% on Thursday evening, trading at $1.2388 from the previous level of $1.2534.

Adding further pressure to the Euro was the Spanish bond yields which saw an incase of 6.9% which is yet again starting to alarm the Eurozone leaders.

Across Asia, the regional markets were trading mostly lower as most European indices dropped after the stimulus measures were announced by the central banks which did not do much to inspire investor confidence.

In the Asian markets, the Kospi led the way in losses, trading lower by 0.7% while the Shanghai composite was down by 0.5%. The Nikkei and the Hang Seng were both trading 0.3% weaker.

Australia’s ASX200 was weak by 0.5% at 4150 with the material and energy sectors weighing down the index.

The US Dollar Index showed signs of strength rising from 82.132 to 82.822 over night. Against the Japanese Yen, the USD was trading higher at 79.98 from the previous levels of 79.84.

Amidst the news, the USD could be falling to pressure on increasing market anticipation that the Fed would decide on a third round of quantitative easing. This comes ahead of today’s Non Farm Payroll data release. Markets expect to see a figure in the range of 90k of new employments in the US. Based on the ADP report which showed 176k new jobs that were added.

This raises the expectations that the NFP figures for June might come in better than expected. It is expected that the US unemployment rate is likely to remain at 8.2%.