The European Central Bank (ECB) Chief Economist Philip Lane offered the same view on dialling back of the Pandemic Emergency Purchase Programme (PEPP) as his colleagues voiced last week.
Key quotes
“It is premature to talk about the end of PEPP.”
“ECB does not have a fixed volume approach to PEPP.”
“Not mechanical in deciding the pace of PEPP purchases.”
“September will be important but a lot of data is still missing.”
“It will take a long time for labor market to recover.”
“US and Eurozone are in different situations.”
Market reaction
EUR/USD is feeling the pull of gravity once again, as the European traders hit their desks, digesting the Fed’s hawkish stance.
The euro traders ignore the ECB-speak, as the spot currently trades at 1.1987, down 0.07% so far.
