During a scheduled speech this Monday, Vice-President of the European Central Bank (ECB) Luis de Guindos said that inflation will hover at present levels over the next 12 months.
- Wage growth of above 2% should be considered when looking at inflation.
- There are a lot of uncertainties surrounding the coronavirus outbreak.
- Starting to see signs of stabilization on a global level.
- Risks are less tilted to the downside for the Euro area.
- Monetary policy side effects are becoming more tangible.
- Fiscal policy has to play a role.
The not so encouraging remarks with regards to the inflation outlook seemed to have exerted some pressure on the shared currency and dragged the EUR/USD pair to fresh session lows, around the 1.1070 region.
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