According to Trichet speech which was held in the prior meeting, he said that he does not rule out any projections of a rate cut, giving markets a good chance to start pricing 50 basis points cut after a couple of weeks.

Based on those projections the Euribor rates eased sharply from the unprecedented levels at 5.39% that were seen when the Credit Crisis intensified in October spreading back endless hesitations in the financial sector resisting from giving out money to borrowers.

The European Banking Federation came out today to say that Euribor prices eased to a record low since January 1999 for the second consecutive time, with the three months Euribor easing down to 193% from the previous 1.94%, along with the one week Euribor inching lower to 1.36% from 1.37%.

The sixteen economies tumbled with the spillover from the United States sub-prime mortgages that altered into the worse Credit Crisis since the Great Depression. With the entire turbulence-taking place in financial markets along with the continuous weakening demand across the world the Euro nations had slipped into the first recession since the Euro was established.

Last week we saw that the Euro zone’s GDP contracted sharply to -1.5% from the previous -0.2% with the yearly output reaching contracting to -1.2% from the previous rise 0.6%. As the levels of the exports and investments in the various euro economies were trapped as other economies in the world had curbed the levels of spending after Unemployment rates surged higher after numerous sectors stalled.

The Euro Zone will continue to struggle with this endless turbulence especially after the G7 finance ministers met in Rome, where they did not reach to a final solution that would shore up the endless deterioration in the economies.

Due to that the European indices fell, Dow Jones euro stoxx fell 0.75% or 16.80 points reaching to 2211.49 levels, the French CAC 40 lost 0.65% or 19.85 points reaching to 2978.41 levels and the German DAX lost .56% or 24.88 points reaching to 4388.45 levels.

So let us just wait for this week’s fundamentals with expectations that confidence will be restored slightly as interventions continue.