The Euro Jumps a Bit, as the ECB Doesn’t Seem in Panic Due to Coronavirus - Forex News by FX Leaders
The ECB doesn't seem in panic due to coronavirus right now

The Euro Jumps a Bit, as the ECB Doesn’t Seem in Panic Due to Coronavirus

Posted Wednesday, February 12, 2020 by
Skerdian Meta • 1 min read

Comments by ECB governing council member, Gabriel Makhlouf

  • There is a potential for a negative growth shock on coronavirus
  • Coronavirus impact adds to already existing uncertainties and risks
  • It is premature to reach any conclusions
  • But there is potential for a negative shock to global growth in the short-term
  • Beyond that, we must wait and see but recognize that uncertainty has increased

This is a pretty fair take on the potential implications of the coronavirus outbreak for the market to consider. While investors are largely brushing aside fears, it must be said that that it is still a bit too early to discount the risks altogether.

Comments by ECB chief economist, Philip Lane

  • We expect gradual, visible move up in inflation
  • Coronavirus can have a pretty serious short-term hit
  • Impact might be relatively minor over a year’s time
  • There will be red lines on banking equivalence after Brexit

Lane says that the European single market is not going to “recreate” the City of London and instead is going to “remain deeply embedded” with the City of London post-Brexit. EUR/USD is a little better, but it looks good for a sell signal on the H1 chart.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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