ECB’s de Guindos: Inflation will hover at present levels over the next 12 months

During a scheduled speech this Monday, Vice-President of the European Central Bank (ECB) Luis de Guindos said that inflation will hover at present levels over the next 12 months.

Additional quotes:

• Wage growth of above 2% should be considered when looking at inflation.
• There are a lot of uncertainties surrounding the coronavirus outbreak.
• Starting to see signs of stabilization on a global level.
• Risks are less tilted to the downside for the Euro area.

The not so encouraging remarks with regards to the inflation outlook seemed to have exerted some pressure on the shared currency and dragged the EUR/USD pair to fresh session lows, around the 1.1070 region.