Lagarde speaks to European parliament
- Covid 19 pandemic and measures to contain the spread of the virus, have caused an unprecedented contraction of economic activity in the euro area
- Financial conditions are still tighter today then at the outset of the Covid 19 pandemic
- ECB’s decisions will make sure that higher borrowing needs by fiscal authorities associated with the necessary fiscal response to the crisis, will not translate into materially higher interest rates for the private sector
- ECB’s crisis related measures are temporary, targeted and proportionate
- ECB’s actions are proportionate to the severe risks to our mandate that we are facing
- ECB continually monitors the proportionality of its instruments
- We remain fully committed to our mandate
For the full text of her speech CLICK HERE.
Last week the ECB surprise the market by increasing bond purchases by €600 billion.
The EURUSD has traded back toward the highs for the day at 1.1319. Getting above that level should open up the door for further upside.