Significant Euro strength needed to push ECB toward deposit rate cut – ABN Amro

"It would take significant further euro strength for the cost-benefit analysis to shift towards a [an ECB] rate cut," strategists at ABN Amro said, according to MNI's Anthony Barton. 

On Wednesday, the European Central Bank (ECB) Governing Council Member Klaas Knot, a renowned hawk, hinted that the central bank could cut interest rates to stem EUR/USD's rise. 

Further, Bloomberg cited ECB sources as saying that markets are underpricing prospects of an interest rate cut. 

The ECB's main refinancing operations, marginal lending facility, and deposit facility are 0.00%, 0.25%, and -0.50%, respectively.