The recent yield rise is a factor of improved outlook, the European Central Bank (ECB) executive board member Isabel Schnabel said on Friday, adding that “this is precisely what we would expect and want to see."
Additional quotes
“Premature removal of ECB support would be a great mistake.”
“Remaining PEPP envelope "quite large", doesn't impose restrictions on the decision; not appropriate time to discuss an increase.”
“Financing conditions remain favorable.”
“Deposit rate cut, new TLTRO, higher tiering multiplier not needed right now.“
“Economy has reached a turning point, short term outlook has improved.”
“Pandemic far from over, either from a health or economic perspective.”
Market reaction
EUR/USD remains depressed below 1.2200, as the greenback holds the upper hand ahead of key US Core PCE inflation data.
At the time of writing, EUR/USD is trading at 1.2177, down 0.11% on the day.