The ECB lowered rates by 25 basis points to 1% in their interest rate decision. The ECB also lowered its marginal lending rate to 1.75% from 2.0% and its deposit rate to 0.25% from 0.50%.
The EUR after dipping initially in a knee-jerk reaction (falling to new weekly lows against the EUR/AUD and EUR/NZD for instance), but pared its gains in the following few minutes, perhaps trapping EUR shorts. The EUR/USD which hit a new daily low following the release, rallied to its highs shortly afterwards.
The market now awaits the ECB Press Conference from Mari Draghi for further insight into the decision as well as other steps the central bank will take to help ease the funding pressures in the European banking system.