ECB's Lagarde: We shouldn't get fixated on coronabonds

Dhwani Mehta FXStreet

‘We shouldn't get fixated on coronabonds’, said the European Central Bank (ECB) President Christine Lagarde in an interview with Le Parisien on Thursday.

Additional comments

Things take time in Europe.

There can be other forms of European solidarity.

Such as mutualised spending from a shared budget or a reconstruction fund.

Longer the confinement, more serious economic impact.

Each month of lockdown costs 2%-3% of GDP.

The level of the euro is fine.

Would like to see a bit more inflation.

ECB will ensure policy is transmitted to the entirety of the Eurozone.

Earlier today, Germany’s Economy Minister Peter Altmaier noted that he expects Eurogroup finance ministers to reach a deal.

Meanwhile, on coronabonds, he said that Can't see any damage from Germany's stance. German priority is to protect euro area stability, he added.

EUR/USD reaction

As worries over the standoff among the Eurogroup persist, President Lagarde’s comments add to them, knocking-off EUR/USD to a fresh daily low of 1.0840, where it now wavers.

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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