ECB’s Lagarde: Coronavirus resurgence is a 'clear risk' to the economic outlook

Dhwani Mehta FXStreet

The unexpected and early rise in the coronavirus cases across Europe poses a clear risk to the economic outlook, European Central Bank (ECB) President Christine Lagarde said in a pre-recorded interview with France’s LCI on Tuesday evening.

Key quotes

“Most scientists in the eurozone were expecting the resurgence of the epidemic in November or December, with the cold.”

“It’s come earlier, and from that point of view that has surprised. It’s not a good omen.”

The ECB’s Governing Council is set to week next to decide on its monetary policy, with a majority of the economists expecting no change in its policy-setting until December.

The central bank is expected to ramp up its 1.35 trillion-euro ($1.6 trillion) pandemic bond-buying program at its last policy meeting of 2020.

EUR/USD holds near monthly tops

EUR/USD is little affected by the cautious remarks from the ECB Chief, as it holds the higher ground near monthly highs of 1.1849.

At the moment, the major rises 0.21% to 1.1843, as the US dollar wallows in monthly lows amid US stimulus hopes.

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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