ECB’s Villeroy: France should progressively end financial support to the economy in the coming year
|In his latest comments in an interview with French media, Les Echos, Governor of the Banque de France, also the European Central Bank (ECB) policymaker, defied risks of an overheating economy while marking sustained increase in inflation in Europe
The policymaker also pushed for an end to French fiscal relief measures in the coming year while spotting the removal of virus-led activity restrictions.
“It will have to be done without rush, but without fear as well”, Villeroy said per Reuters. The ECB board member also mentioned, as per Reuters, "Europe should boost the euro’s international role as its use in global foreign exchange reserves amounted to only a third of that of the dollar, while the U.S. and European economies are of similar size."
EUR/USD eases from the top...
Given the Bank of France's upbeat forecasts, conveying the economy's ability to grow by 5%, the news should weigh on the EUR/USD. That said, tghe currency major steps back from two-day top of 1.2094 to currently around 1.2094 during the initial hours of Friday's Asian trading session.
Also read: Wall Street Close: Benchmarks drift lower despite US dollar pullback
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