ECB’s Lane: It is premature to talk about end of PEPP

Dhwani Mehta FXStreet

The European Central Bank (ECB) Chief Economist Philip Lane offered the same view on dialling back of the Pandemic Emergency Purchase Programme (PEPP) as his colleagues voiced last week.

Key quotes

“It is premature to talk about the end of PEPP.”

“ECB does not have a fixed volume approach to PEPP.”

“Not mechanical in deciding the pace of PEPP purchases.”

“September will be important but a lot of data is still missing.”

“It will take a long time for labor market to recover.”

“US and Eurozone are in different situations.”

Market reaction

EUR/USD is feeling the pull of gravity once again, as the European traders hit their desks, digesting the Fed’s hawkish stance.

The euro traders ignore the ECB-speak, as the spot currently trades at 1.1987, down 0.07% so far.

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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