ECB's Wunsch: ECB should phase out PEPP next March

Eren Sengezer FXStreet

Based on the current economic projections, the European Central Bank (ECB) should phase out the Pandemic Emergency Purchase Program (PEPP) next March, ECB policymaker Pierre Wunsch told Reuters on Friday.

"If you want to be responsibly consistent, then based on our growth forecasts you end in March," Wunsch said. "But at the same time, we want to avoid cliff effects and the majority feel that we need to be flexible in the transition."

Market reaction

The EUR/USD pair showed no immediate reaction to these remarks and was last seen trading flat on the day at 1.1767.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD turns negative near 1.1850

EUR/USD has given up its earlier intraday gains on Thursday and is now struggling to hold above the 1.1850 area. The US Dollar is finding renewed support from a pick-up in risk aversion, while fresh market chatter suggesting Russia could be considering a return to the US Dollar system is also lending the Greenback an extra boost.

GBP/USD change course, nears 1.3600

GBP/USD gives away its daily gains and recedes toward the low-1.3600s on Thursday. Indeed, Cable now struggles to regain some upside traction on the back of the sudden bout of buying interest in the Greenback. In the meantime, investors continue to assess a string of underwhelming UK data releases released earlier in the day.