The European Central Bank (ECB) officials believe markets are underestimating the likelihood of rate cutsBloomberg reported Wednesday, citing sources familiar with the matter.
Lawmakers are reportedly uncomfortable with investors ruling out rate cuts and have agreed to reassure markets that a rate cut is still a viable option.
Market reaction
The shared currency suffered heavy losses to rivals after this headline. At time of writing, the EUR / USD is losing 0.76% daily at 1.2068. Meanwhile, the EUR / JPY and EUR / GBP fell around 0.3%
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