# VIEW ECB cuts rates again, euro rallies

> The European Central Bank cut interest rates as expected on Thursday. The euro and European bond yields surged during the week on signals that Germany will ramp up defence and infrastructure spending.

- Date: 2025-03-05 · published 2025-03-05T12:00:00.000Z
- Category: macro · region Europe · magnitude medium
- Page: https://feedsoft.ai/events/5805-view-ecb-cuts-rates-again-euro-rallies
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

ECB rate cuts combined with German fiscal expansion move the euro and European yields, affecting dollar-priced commodity import costs for European feed buyers.

## Read by commodity

- EURUSD: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2025-03-07 | 5 | +4.4% | 5.8 | The ECB rate cut coincided with euro and bond yield gains driven by German spending signals, contributing to the rally. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2022-04-21 | [Euro gains on ECB rate hike view, Macron optimism](https://feedsoft.ai/events/42063-euro-gains-on-ecb-rate-hike-view-macron-optimism.md) | -2.8% | -3.3% |
| EURUSD | 2024-05-31 | [Eurozone inflation accelerates in May: Are ECB rate cuts in doubt? \| Euronews](https://feedsoft.ai/events/30466-eurozone-inflation-accelerates-in-may-are-ecb-rate-cuts-in-doubt-euronews.md) | +0.4% | -1.2% |
| EURUSD | 2024-09-12 | [Euro gains after ECB rate cut as Lagarde pushes back on October ease](https://feedsoft.ai/events/28525-euro-gains-after-ecb-rate-cut-as-lagarde-pushes-back-on-october-ease.md) | +0.9% | -0.6% |
| EURUSD | 2023-12-14 | [Euro-Dollar Closing On 1.10 As ECB Resists Rate Cut Bets](https://feedsoft.ai/events/8300-euro-dollar-closing-on-1-10-as-ecb-resists-rate-cut-bets.md) | +1.5% | +1.5% |
| EURUSD | 2022-12-15 | [ECB raises rates again, outlines balance sheet run off](https://feedsoft.ai/events/38435-ecb-raises-rates-again-outlines-balance-sheet-run-off.md) | -0.5% | +1.5% |

## Sources

- reuters.com: https://www.reuters.com/markets/rates-bonds/ecb-cut-rates-again-trade-wars-defence-cloud-outlook-2025-03-05/
- reuters.com: https://www.reuters.com/markets/rates-bonds/view-ecb-cuts-rates-again-euro-rallies-2025-03-06/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.