While speaking in a World Economic Forum panel on Wednesday, European Central Bank (ECB) Governing Council member Klaas Knot said that he was not expecting the ECB to start discussing balance sheet reduction this year, per Reuters.

"We’ve been saying that we won’t touch the balance sheet for the foreseeable future or at least well beyond liftoff," Knot explained. "So I don’t expect any discussion on that at least for the remainder of this year and into next year."

Market reaction

The shared currency stays on the back foot on Wednesday and the EUR/USD pair was last seen losing 0.63% on the day at 1.0666.