ECB’s Panetta: Economic recovery in 2021-22 won't make up for the lost ground in 2020.

Dhwani Mehta FXStreet

The new European Central Bank (ECB) executive board member Fabio Panetta said on Friday, the economic recovery in 2021-22 won't make up for the lost ground in 2020.

Lockdowns created deflationary risks, Panetta added.

The central bankers echoed the concern about the deflationary risks as his colleague Pablo Hernandez de Cos voiced out earlier today.

De Cos said that the rising risk of deflation warranted more stimulus.

EUR/USD consolidates the uptick

EUR/USD is keeping its range near the multi-week tops of 1.1384, now trading in the 1.1377 arena. The euro is little changed by the above comments.

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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