Comments by ECB banking supervision member, Kerstin af Jochnick
Adding that "the baseline scenario of our projections cannot be taken for granted". This could be a personal opinion but it also reflects the downside risks to the outlook, which I would expect to be brought up by Lagarde in her press conference later today.
Looking at the ECB decision later, recent virus developments have arguably accelerated the pace for more action by the ECB and they may very well bring forward their PEPP expansion decision to today, should there be a need to act preemptively.
However, that only changes the pace of the trajectory and it doesn't set the central bank on a different path that it will be embarking on either way next month.
To me, that sees limited scope for a major reaction in the euro but perhaps the more sombre tone by Lagarde later may well push the single currency to test 1.1700.
