According to Reuters, the ECB may cut the key interest rate and downgrade the forecast for the eurozone’s economic growth in June 2012 if necessary. A representative of the ECB said during his interview with The Financial Times that there would be no major differences between the central banks’ March and June forecasts.
According to him, there are no major inflation risks expected this year. However, if the situation starts deteriorating the ECB may well raise the key interest rate. However, the ECB has plenty of emergency tools.
According to , the EURUSD futures contract tested the 1.2950 resistance and rebounded for it. It means the bulls have difficulties initiating a rally. If the bearish pressure intensifies, the price may test the bottom.
