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Pandemic and related containment measures will continue to adversely affect Euro area economic activity in the short term, says the ECB President Christine Lagarde at the 43rd IMFC meeting.

Additional quotes:

  • Beyond the short term, Euro area activity should pick up.
  • The risks surrounding the Euro area growth outlook have become more balanced.
  • Underlying price pressures are likely to increase somewhat this year.
  • PEEP envelop not used in full if favourable financing conditions can be maintained.
  • The envelope can be recalibrated.

The comments did little to influence the shared currency as investors await the release of ECB monetary policy meeting minutes later this Thursday. Apart from this, a scheduled speech by Fed Chair Jerome Powell might provide some impetus to the EUR/USD pair.