Forex Flash: ECB might still cut rates – Rabobank

FXstreet.com (Barcelona) - The single currency continues to push higher, actually advancing more than two big figures to the proximities of 1.3265 after breaking the consolidation pattern around 1.3050 that prevailed since late Tuesday. The preference for riskier assets was catapulted after Draghi's presser, pushing the euro to weekly highs.

According to Elwin de Groot, Senior Eurozone Strategist at Rabobank, "Continued economic weakness coupled with a further fall in inflation (below 2%) could still spur the Council into action later this year, but it is likely to require renewed market turbulence as well. Given that we still expect Spain to make a formal request for support (which would probably require renewed market pressure) we retain our view for one more cut further down the line".