ECB's Lagarde: Financial stability risks in euro area remain elevated

Banks in the euro area currently have sufficiently robust capital and liquidity buffers, European Central Bank President Christine Lagarde said on Thursday but added that financial stability risks in the area remain elevated, per Reuters.

Additional takeaways

"Headline inflation is likely to remain negative over the coming months before turning positive again in early 2021."

"The Governing Council will carefully assess all incoming information, including developments in the exchange rate."

"We continue to stand ready to adjust all of our instruments, as appropriate."

Market reaction

The EUR/USD pair continues to edge lower after these remarks and was last seen losing 0.43% on the day at 1.1696.