Lagarde opening statement: Near-term economic outlook for the eurozone has deteriorated

<ul><li>Near-term economic outlook for the eurozone has deteriorated owing largely to weaker domestic demand</li><li>We will continue to follow a data-dependent path</li><li>Momentum is slowing in the service sector, though it remains a sign of strength</li><li>Housing and business investment are showing signs of weakness</li><li>Over time, improving supply conditions and falling inflation should support recovery</li><li>Many new jobs are being created, especially in services sector</li><li>Jobs may turn negative for manufacturing</li><li>As energy crisis fades, governments should roll back supports</li><li>Domestic price pressures, including from wages and profit margins, are becoming an increasing source of inflation</li><li>The outlook for economic growth and inflation remains highly uncertain</li><li>Upside risks to inflation include possible pressures on energy and food</li><li>Demand for mortgages has fallen for a fifth quarter in a row</li><li>We stand ready to adjust all instruments</li></ul><p>The euro has been sagging during the press conference but some of that is because of the strength of the US dollar following strong data.</p>

This article was written by Adam Button at www.forexlive.com.