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The European Union is planning to activate its bailout fund with an aim to allow the ECB to buy sovereign bonds through its Outright Monetary Transactions program, Bloomberg reported on Wednesday, citing three sources familiar with talks.

Officials are also reportedly considering a plan that would pave the way for the European Stability Mechanism to create multiple credit lines for the euro area governments.

EUR/USD reaction

The EUR/USD pair continues to edge lower after this headline and was last seen trading at 1.0890, erasing 0.95% on a daily basis.