The ECB chief economist Philip Lane announced yesterday that by mid-2022, the eurozone’s GDP will recover to the coronavirus crisis. Lane notes that the current recession is not like previous global financial crises, when output has been recovering for several years. Extensive fiscal and monetary stimulus will allow the current crisis to pass more quickly.

In past crises, politicians and central banks have acted much more slowly than they do now. Philip Lane reaffirmed the ECB’s unwillingness to control the yield curve and buy more long-term bonds, inasmuch as financial conditions in the eurozone are stable. Today the question of control over the yield curve will also be asked to the head of the Fed, Jerome Powell. Will Powell repeat the speech of his ECB colleague or will he surprise the market?

Investment idea: flat 1.1860-1.1950.