[eternalfuture]

Novice,

Here's my thought about the effects of the news on the market.

Unexpected news and economic figures have more effect on the market than more expected ones.

That includes interest rates. True that raising a currency's interest rates should also increase the value of that currency. But if such move has already well anticipated before, then by the time the central bank confirms the rate hike, the effect may have cease to exist. It could even results in adverse effect, that is, instead of propping up the currency, it pressurize the currency.

Stringmine,

Those ECB guys are surely some jolly good fellows right now. Sure, their verbal intervention has been successful. But, for how long? Japan threw REAL-NON-VERBAL interventions, yet USD/JPY still at the risk of dropping now. This will work the same for EUR/USD. First the verbal intervention works, then after the market 'got used to' such actions, the effectiveness of the verbal intervention will be reduced... until the ECB mean what they say, that is, by conducting real intervention. If I'm not mistaken, ECB's monetary policy doesn't aim for specific FX level, but aiming at price stability (that means inflation rate, not EUR/USD level).

Cheers!