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The worsening coronavirus situation could hit the economic recovery in Italy and the rest of Europe, warned European Central Bank (ECB) Governing Council member Ignazio Visco on Friday, as reported by Reuters.

Additional takeaways

“Deflation risk in the eurozone is lower than 6 months ago but must not be ignored.”

“Strong rise in Italy’s household savings rate risks acting as a brake on the country’s economic recovery.”

“Italy must avoid accumulating bad loans on their books without adequate provisions.”

Market reaction

The EUR/USD pair largely ignored these comments and was last seen trading at 1.1673, where it was virtually unchanged on a daily basis.