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Deutsche Bundesbank President Jens Weidmann, speaking about COVID-19 and the effects on banks in Germany at a virtual event this Tuesday, said that a rapid and strong economic recovery after the coronavirus crisis is quite unlikely.

Additional quotes:

  • Germany in a severe economic recession.
  • The economic can recover sustainably once the pandemic has been overcome.
  • Classic fiscal stimulus may make sense at a later point.
  • Should not lose sight of an eventual exit from stimulus measures.

Weidmann’s hawkish tone, followed by the German court ruling on the ECB QE program provided a modest lift to the shared currency. The EUR/USD pair jumped to fresh session tops, around the 1.0925 region, albeit lacked any strong follow-through.