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Lagarde’s Optimism on Europe’s Economy Triggers Euro Rally

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FRANKFURT—European Central Bank President Christine Lagarde sounded an optimistic tone on the eurozone’s stuttering economic recovery and the strength of the euro, sparking a rally in the currency, as the bank left its policy mix unchanged while it monitors the impact of Covid-19.

ECB President Christine Lagarde said the bank is paying close attention to the currency, highlighting its recent gains against the dollar and others as a drag on inflation, and adding that the eurozone economy is experiencing a strong rebound from…

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