The euro started the new week with slight losses. On Monday afternoon, the common currency cost 1.1849 dollars about a quarter of a US cent less than the previous day. Market-relevant economic data were initially not on the schedule. However, the President of the European Central Bank (ECB), Christine Lagarde, dismissed in an interview with the TV broadcaster Bloomberg pointed out the great importance of the next interest rate meeting in about a week and a half. The central bank had adjusted its strategy last week and, in addition to a new inflation target, decided, among other things, to simplify its communication. According to Lagarde, the ECB will adjust its monetary policy outlook at the upcoming meeting in the light of the changed strategy. “Yes, there will be some interesting variations and changes,” she noted. The monetary policy outlook of the ECB contains, among other things, statements on the likely end of the trillion dollar emergency bond purchases and information on the conditions under which key interest rates will rise again in the future. According to Lagarde, however, the time has not yet come to talk about withdrawing the monetary policy support that the monetary authorities have initiated in the fight against the economic consequences of the corona crisis.
In the commodity markets, investors speculated on a weakening demand due to new pandemic restrictions. The industrial metal copper fell 1.4 percent to $ 9,382 per ton. At the same time, the price of Brent crude oil fell by 1.2 percent to $ 74.68 per barrel. The failed agreement of the major oil-producing countries on a common production policy is fueling fears that the oil states will flood the world market with crude oil, said analyst Stephen Brennock from brokerage firm PVM Oil Associates.