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European Central Bank’s (ECB) Vice President Luis de Guindos said on Friday that he expects inflation in the eurozone to remain at negative levels for the rest of 2020 and added that a recovery is likely to occur in 2021.

De Guindos further argued that prices are declining because of low energy prices and weak demand, as reported by Reuters.

Earlier in the day, the data published by the Eurostat showed that the Core Consumer Price Index (CPI) in the euro area declined to 0.2% in September from 0.4% in August.

Market reaction

The EUR/USD pair edged slightly lower after these comments and was last seen losing 0.28% on a daily basis at 1.1715.