In its recently published Bank Lending Survey (BLS), the European Central Bank (ECB) noted that a net 38% of Eurozone banks reported a fall in demand for credit from companies in the first quarter of the year.

A net 27% of Eurozone banks reported tightening of ending standards for companies in the same period. "The general level of interest rates was reported to be the main driver of reduced loan demand, in an environment of monetary policy tightening," the ECB explained in its publication.

Market reaction

EUR/USD came under renewed bearish pressure after this publication and was last seen trading modestly lower on the day at 1.0972.