The euro slipped and turned negative Friday following news report that the European Central Bank is considering another long term refinancing operation -- LTRO -- to support European banks.
The euro dropped to $1.1378, compared with its session high of $1.1458, according to FactSet. The ECB's first LTRO program from 2011 provided cheap loans to local financial institutions in the wake of the European sovereign debt crisis, and particularly Spanish and Italian banks took advantage. Investors are presently again concerned about the health of Italy's banks and their large sovereign debt holdings in the light of the country's fiscal issues and drama surrounding its 2019 budget proposal which was rejected by the European Commission last month.
Source : Marketwatch