ECB President Lagarde Warns of Risks to Financial Markets from Coronavirus Epidemic
What's on this page
ECB Meeting and EUR/USD Price, News and Analysis:
- ECB under increasing pressure to act on Thursday.
- Bank of England the latest central bank to slash interest rates.
ECB Lagarde Priming Markets for Further Monetary Loosening
Ahead of Thursday’s critical ECB meeting, President Christine Lagarde has released a statement saying that the central bank is ready to‘take appropriate and targeted measures, as necessary and commensurate with the underlying risks’ to fight off risks to the ‘economic outlook and the functioning of financial markets.’
Market participants are already expecting the ECB to cut rates by 10bps to -0.60% and to announce a range of other options to try and ward off the effects of the coronavirus to growth and financial stability in the Eurozone. Other measures may include additional lending to SMEs and changes to the TLTRO program.
The Bank of England earlier today slashed interest rates by 50 basis points today, taking its lending rate down from 0.75% to 0.25%, following interest rates cuts by the Federal Reserve, the Bank of Canada and the Reserve Bank of Australia in recent days. The G7 group of finance ministers said at the start of the month that they would act in a coordinated fashion to prevent economies from tipping into recession. The ECB will now be in the spotlight to act decisively especially with Italy now in full lockdown and with heightened fears that other Eurozone members may soon follow suit.
For all market moving data and events please the DailyFX calendar
What is your view on EURUSD – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.