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Jens Weidmann, European Central Bank (ECB) Governing Council member and Bundesbank President, said on Wednesday that the ECB’s Pandemic Emergency Purchase Programme (PEPP) is flexible.

Additional takeaways

“Deposit rate cut is one of ECB’s tools.”

“The size of the yield moves is not particularly worrisome.”

“ECB looking at conditions beyond government bond yields.”

Market reaction

The shared currency remains on the back foot following these comments and continues to weaken against its major rivals. As of writing, the EUR/USD pair was down 0.32% on the day at 1.2050.