While testifying before the European Parliament, European Central Bank (ECB) President Christine Lagarde acknowledged that they must be attentive to recession risks but noted that recession was not their baseline scenario for the eurozone, per Reuters.

During her testimony, Lagarde said that she will not be revealing any features of the new bond-buying tool and added that they will look at the balance sheet size issue at a later stage.

Market reaction

The EUR/USD pair edged slightly higher following these comments and was last seen gaining 0.35% on a daily basis at 1.0535.