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Citing sources familiar with the matter, Bloomberg reported that the ECB will cut the growth outlook by enough to warrant new loans (LTROs). The ECB is further said to hold discussions on the design of the new targeted loans and debate the maturity and the interest rate on those loans. Sources also noted that the ECB will cut inflation projections through 2021.

With the initial market reaction, the EUR/USD pair slumped to its lowest level in two weeks at 1.1286 and was last seen trading at 1.1303, losing 3 pips on the day.