A poll of 97 ECB economists showed a strong consensus in favor of a cut in June. All but six forecast a reduction in June, which is exactly what many members of the ECB Governing Council have predicted.
How much cuts they will make this year is more of a debate, with 59 people seeing cuts of 75 basis points or less this year and 38 people seeing cuts of 100 basis points or more.
The euro is in difficulty today despite improving risk sentiment. It is down 23 pips at 1.0630 and very close to session lows.
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