European Central Bank (ECB) policymaker Francois Villeroy de Galhau speaks about the central bank’s new anti-fragmentation tool announced on Thursday.

Key quotes

“There are no limits to purchases with TPI mechanism.”

“ECB will be as determined in activating TPI if necessary.”

“TPI decision shows unity and unlimited commitment to the euro.”

“Frontloading rate hikes do not mean terminal rate will be higher.”

Market reaction

EUR/USD extends its sell-off after the French and German PMIs disappointed and revived recession fears. The pair is currently trading at 1.0130, down 0.94% on the day.