The Eurozone is in crutches due to the coronavirus pandemic and is a long way from crossing the bridge. According to Lagarde, the ECB boss, the only tools at their disposal are fiscal and monetary policies. That means Q.E. will continue, and rates will remain lower. At the same time, inflation could rise in the next few months due to temporary measures instituted by the central bank.
Central banks worldwide are still struggling to contain the virus, but there is progress. Inoculation and suitable monetary policy cushion businesses and individuals. The Euro could slide as analysts interpret ECB's comments to mean caution at a time when Canada and the U.S. appear to be on a recovery path.
Impact on the Euro:
Bearish. The Euro may slip, reversing gains against the USD of the last two weeks when the single currency advanced on retreating bond yields and fears of inflation in the U.S.
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