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The European Central Bank’s (ECB) Governing Council stands ready to adjust all of its instruments, as appropriate, to ensure that inflation moves towards the target in a sustained manner, Luis de Guindos, Vice-President of the European Central Bank (ECB), said on Monday.

“The coronavirus added a new layer of uncertainty to global and euro area growth prospects,” noted de Guindos in his prepared remarks delivered at the European Economics and Financial Centre in London. “If the virus spreads more widely, domestic firms could be more directly affected due, for example, to supply chain delays.”

EUR/USD reaction

The EUR/USD pair clings to its strong daily gains after these comments. As of writing, the pair was up 0.8% on the day at 1.1115.

Additional takeaways

“Prior to the coronavirus outbreak, the outlook for global economic activity had been showing some signs of improvement.”

“The euro area growth outlook showed signs of stabilisation after the persistent deceleration throughout 2018.”

“We remain vigilant and will closely monitor all incoming data.”

“The front line of the response to coronavirus should be fiscal policy.”