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The European Central Bank (ECB) officials think that markets are underestimating rate-cut odds, Bloomberg reported on Wednesday, citing sources familiar with the matter.

Policymakers have reportedly agreed to reaffirm that more stimulus via a rate-cut remains a viable option.

Market reaction

The shared currency suffered heavy losses against its rivals following this headline. As of writing, the EUR/USD pair was losing 0.76% on a daily basis at 1.2068.