ECB’s de Cos calls for enhanced coordination at European level to mitigate impact of coronavirus

Dhwani Mehta FXStreet

Mitigating measures taken in Spain, other European countries led to "very severe" disruption of economic activity, said the European Central Bank (ECB) Governing Council member Pablo Hernandez de Cos on Friday.

He further calls for enhanced coordination at the European level to mitigate the impact of coronavirus.

Additional quotes

Asset purchase program to be completely flexible.

Limits on asset purchases can be relaxed if needed.

ECB to do 'whatever it takes' to respond to virus impact.

There are still no clear data to precisely assess intensity of coronavirus impact.

Coronavirus pandemic is a transitory episode.

Public policy is crucial to avoid temporary effect becoming more permanent.

Scale of shock requires higher ambition for common European fiscal policy.

Coordination at the European level is "not an option" but "a necessity".

EUR/USD reaction

EUR/USD is reversing its recovery gains to now trade at 1.0775, still up 0.80% so far.

The spot rebounded from a three-year low of 1.0653 and reached as high as 1.0832 before turning south again. The US dollar dynamics continue to lead the way amid further stimulus expectations and incoming coronavirus updates.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

Bitcoin gradually ticks up on Friday, trading above $81,000. The Crypto King has recently defended structural support near $80,000, reinforcing the prevailing bullish outlook. Ethereum similarly edges higher above $2,400, while Ripple trades above $1.32 after testing support around $1.30.

The French bond panic is overdone. Here's what the market is misreading

France's 10-year government bond yield has climbed above 5%, reigniting fears of a sovereign debt crisis in the Eurozone. With public debt exceeding €3.5 trillion, persistent budget deficits and a fragmented political landscape, investors are increasingly questioning the French government's ability to stabilize its finances.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.