We shall review some of the key comments from the ECB’s Governing Council member and Bank of France Head Villeroy de Galhau:
Fiscal policy must be used to help economies.
Global economy looks increasingly uncertain.
Significant strengthening of forward guidance, the consequent of longer reinvestment period and the DFR cut, are already powerful.
Our forward guidance is now strongly “state based”, reflecting our enhanced commitment to reach our objective.
This is significant progress that has perhaps been overshadowed by the arguments over QE.
EUR/USD is making an attempt to regain the 1.10 handle ahead of the German IFO Survey. But the risks remain skewed to the downside amid Euro area manufacturing recession.