Four sources with direct knowledge of the discussions said that several ECB policy makers said the ECB's economic forecasts were too optimistic because of weak economic growth and persistent trade tensions in China.
At last week's policy meeting, a "significant minority" of interest rate makers questioned the long-term expected economic recovery in the second half of this year, and some even questioned the accuracy of the ECB's forecast model, which had been revised downward for a long time, sources said.
"This is another pigeon's view," said Win Thin, director of global foreign exchange strategy at Brown Brothers Harriman. "I think they are preventing the euro from strengthening. This is one of the few levers they have left.
European purchasing managers'index (PMI) for manufacturing and services will be released on Thursday, and traders will closely monitor signs of improvement in economic growth in the region.
The Australian dollar has hardly changed in the day since it weakened earlier. Previously, the Bank of Australia said that if inflation remained low and unemployment increased, interest rate cuts would be "appropriate".
Sterling fell Tuesday after the Guardian newspaper reported that talks between Prime Minister Teresa May's government and the opposition Labour Party had stalled, but Labour denied the report.
Traders are still waiting for China's GDP data on Wednesday, which may indicate that the worst of the global economy has passed.
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