On Friday, the pair remains optimistic and goes on growing. The current quotation is 1.1836.
The European Central bank completed its September meeting yesterday, leaving its monetary and credit policy without change. The interest rate remains at zero, as expected.
The ECB commented that the PEPP, meant for buying back assets for 1.35 billion USD, would remain effective but with time, the regulator was going to make it flexible. The program will be on at least till the mid-summer 2021 – just as it had been planned.
The ECB plans to work as flexibly as possible and provide enough bank liquidity via the operations of refinancing; also, it will correct the list of instruments necessary for driving inflation to the aim of 2% and around it.
On the press-conference, the head of the ECB noted that we need to keep a close eye on the rate and behavior of the euro; however, it should not be overvalued. The ECB considers the stability of prices to be the crucial task. The rate of the euro attracts attention because it has negative influence on the prices, however, there is nothing too stressful.
Inflation in the EU is held back by the low prices for energy carriers, so its dynamics has quite natural basics – the ECB cannot control them, of course.
Domestic demand, according to the ECB, restored quite significantly, while the consumer spending is negatively influenced by overall ambiguity of the situation.
The decisions and comments of the ECB inspired the buyers of the euro, which is not bad.