ECB's Lagarde: Forward guidance on rates and APP acts as an effective stabiliser

The forward guidance on interest rates and asset purchases act as an "effective automatic stabiliser," European Central Bank President Christine Lagarde said on Wednesday.

"The environment facing European businesses today is characterised by both uncertainty in the short term and a changing landscape in the longer term," Lagarde explained. "Short-term uncertainties are mainly related to global risks – trade, geopolitical and now the outbreak of the coronavirus."

Lagarde further reiterated that climate change will be a key part of the ongoing strategy review.

EUR/USD reaction

The EUR/USD pair largely ignored these comments and was last seen trading at 1.1020, down 0.2% on a daily basis.