Lagarde stated the following "Rebound is uneven across sectors and regions; financial risks in EZ remain elevated; banks currently have sufficiently robust capital and liquidity buffers; headline likely to remain negatives over the coming months, turning positive in 2021; stand ready to adjust all instruments"
Technicals remain triggered here as long as we remain below the ECB deposit rate. If we retain above -61bps and push the -50 figure catalysts such as election, EURIBOR, and future policy changes could trigger a break back toward the -45 handle. Continuation through monthly closing range coupled with EURO ZONE negative yield pricing across the peripherals I'd be looking for a test of all time lows. Once a correction completes, we would look for a potential reversal back through levels not seen since EUR credit crisis.