Lagarde speech: We must preempt fragmentation

While testifying before the European Parliament, European Central Bank (ECB) President Christine Lagarde said that the ECB must be flexible to ensure a proper policy transmission. 

"The fight against fragmentation is a precondition to the success of the monetary policy," Lagarde added and noted that they must preempt fragmentation.

Market reaction

EUR/USD continues to fluctuate in the lower half of its daily range following these comments. At the time of press, the pair was trading at 1.0520, where it was up 0.2% on the day.