ECB's Kazimir: Eurozone deflation risks are balanced

Dhwani Mehta FXStreet

The deflationary risks to the Eurozone are balanced but the European Central Bank (ECB) needs to deploy pre-emptive measures to avoid a costly recovery, the Governing Council member Peter Kazimir said on Wednesday.

“Easy monetary policy was likely to stay for an extended period, especially as the coronavirus pandemic has brought about a period of extraordinary volatility,” Kazimir added.

Market reaction

EUR/USD is testing critical support at 1.1700, undermined by comments from President Lagarde and disappointing US Presidential election debate.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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