ECB’s Knot: There is good reason to expect robust recovery in H2 2021


Dutch central bank chief and the European Central Bank (ECB) policymaker Klaas Knot told Reuters in an interview that the eurozone economy is on course for a robust recovery in the second half of the year. This could allow the ECB to start phasing out its emergency bond purchases in the third quarter and end purchases in March 2022, Knot added further.

Additional quotes:

  • There are clearly upside risks for growth in the second half.
  • There is good reason to expect a robust recovery in 2H 2021.
  • Outlook beyond the short term hasn't changed, economy showing resilience.
  • Comfortable with nominal yield rise if driven by better inflation and growth prospects.
  • Can flexibly adjust PEPP volumes even within the quarter, if appropriate.

The comments did little to influence the shared currency or provide any meaningful impetus to the EUR/USD pair, which remains confined in a range below the very important 200-day SMA. Investors now seemed to have moved on the sidelines and await fresh catalyst from Wednesday's release of the latest FOMC meeting minutes.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Bulls take a breather below 200-DMA, FOMC minutes eyed

Having faced rejection once again below the 200-DMA at 1.1890, EUR/USD is easing towards 1.1850. The US dollar selling pauses amid stabilizing Treasury yields. All eyes remain on the dollar dynamics and the FOMC minutes.

EUR/USD News

GBP/USD struggles for direction, stuck in a range around 1.3825-30 region

GBP/USD is consolidating the overnight sharp retracement slide from two-week tops. A modest uptick in the US bond yields underpinned the USD and capped any meaningful gains. Investors await the UK Services PMI for some impetus ahead of the FOMC minutes.

GBP/USD News

XAU/USD bulls turn cautious ahead of FOMC minutes

A combination of factors prompted some selling around gold on Wednesday. An uptick in the US bond yields underpinned the USD and exerted some pressure. Wednesday’s key focus will remain on the release of the FOMC meeting minutes.

Gold News

Ripple recaptures $1 mark amid a discovery hearing win

Ripple Labs won in a discovery hearing that would force the Securities & Exchange Commission (SEC) to hand over its internal documents on Bitcoin and Ethereum. The XRP price has since risen 23.4% in the past 24 hours, trading above $1.

Read more

FOMC Minutes March 16-17 Preview: Growth without inflation?

Can a fast-growing US economy replace its pandemic labor casualties without triggering a response from the Federal Reserve? Markets looking for any hint that the Fed is considering curtailing bond purchases.

Read more

Forex MAJORS

Cryptocurrencies

Signatures