EUR/USD tumbles to lows on ECB headlines, near 1.1210

EUR/USD came under fresh selling pressure following ECB headlines, testing daily lows in the 1.1220 region.

EUR/USD weaker ahead of ECB meeting

The pair faces a bout of downside pressure after the European Central Bank could cut its inflation outlook through 2019, while it might raise its outlook for the GDP in the region by 0.1% for the same period.

The headlines add to the already rumours hovering markets that the central bank could refrain from re-assessing its tone at tomorrow’s meeting, particularly after inflation figures in the euro bloc are expected to come in lower than initially estimated for the month of May.

Today’s headlines should plot against views that the ECB could start tapering its QE programme any time soon, let alone thinking about rising rates.

EUR/USD levels to watch

At the moment, the pair is losing 0.57% at 1.1214 facing the next support at 1.1202 (low Jun.1) followed by 1.1162 (20-day sma) and finally 1.1108 (low May 30). On the flip side, a breakout of 1.1284 (2017 high Jun.5) would target 1.1300 (high Nov.9 2016) en route to 1.1367 (high Aug.18 2016).