The euro dropped to as low as $1.1205 on Wednesday after Bloomberg reported that the European Central Bank will cut its inflation forecast through 2019. The shared currency traded around $1.1284 ahead of the report, up from $1.1278 late Tuesday in New York. Bloomberg cited a draft forecast ahead of the ECB’s policy-setting meeting on Thursday, where analysts see the central bank taking “baby steps” toward ending its ultraloose monetary policy. However, if the Bloomberg report is right “it does not sound like an ECB ready to tighten,” said Kristoffer Lomholt, senior analyst at Danske Bank, in a post to Twitter.
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