IMF calls for ECB to cut further

EUR/USD and EUR/JPY are sliding as the IMF says the ECB should use any margin to cut rates further as soon as possible.

The bank should keep interest rates low as disinflationary pressures persist.

The best way to keep eurozone interest rates low is through long-term unlimited funding (which the ECB is doing),

The ECB needs to weigh the benefits of further cuts in policy rates with adverse money market impact.

EUR/USD has fallen to 1.4035. China is seen toward 1.4010. Stops are seen below 1.4000.