The euro maintains its strength, largely due to pound weakness, and is still strong against the dollar.
Comments by President of the European Central Bank, Christine Lagarde, in the latest monetary policy meeting were subtle. Lagarde acknowledged that the outlook for the eurozone is beginning to look more positive; nonetheless, she stressed that economic recovery was “clouded by uncertainty” due to a recent rise in cases in some countries, as well as the vaccine rollout.
In the meeting, it was revealed that the bank will speed up its Pandemic Emergency Purchase Program (PEPP) in Q2 to further support the eurozone economies. Interest rates will remain unchanged for now, but Lagarde indicated that they are likely to rise in the coming months.
