ECB’s de Cos: Monetary policy to remain highly accommodative for prolonged period of time


While speaking to Reuters on Thursday, the European Central Bank (ECB) Governing Council member Pablo Hernandez de Cos said that the monetary policy to remain highly accommodative for a prolonged period of time.

Additional Comments

Coronavirus does keep balance of risks to downside.

European banks should step up their efforts to adapt their business models and become more profitable.

Low-for-long interest rate environment could be encouraging excessive risk-taking by some financial intermediaries.

Asset valuations appear stretched in several advanced economies in markets such as equity, high-yield debt, and property markets.

Challenges to global financial stability include risks related to governance failures.

Crucial that financial market participants keep improving their governance and restore the confidence of their clients as soon as possible.

Brexit entails significant risk of further fragmentation, as some companies may relocate to different financial centres.

EUR/USD off multi-month lows

Despite dovish reiteration from the ECB policymaker, the corrective bounce in EUR/USD remains intact around 1.0885 region. The spot hit a new 33-month low of 1.0865 amid increased odds of more ECB stimulus, as the economic situation in Germany deteriorates.  

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD hovers above multi-year lows amid coronavirus fears, ahead of ZEW

EUR/USD is trading just above 1.0820, the lowest since 2017, as the coronavirus outbreak is taking its economic toll on Apple among others. The German ZEW Economic Sentiment figure is eyed.

EUR/USD News

GBP/USD extends losses to sub-1.3000 area, UK unemployment rate in focus

GBP/USD stays mildly negative just below 1.30 while heading into the London open on Tuesday. UK’s Brexit negotiator shares the same view as PM Boris Johnson, increases the risks of hard departure. UK employment statistics will be the key to clarify on the BOE’s bearish bias.

GBP/USD News

Forex Today: Coronavirus takes a bite from the apple, Gold gains, Bitcoin bounces

The coronavirus outbreak's economic impact is growing as Apple, the iPhone maker has issued a warning that it is unable to meet its guidance due to production and issues and closed stores in China. The tech giant's announcement has been weighing on the market mood, pushing gold and the yen higher. 

Read more

Gold: Positive beyond six-week-old falling trendline

Gold prices take the bids above $1585, +0.35%, during the pre-European trading on Tuesday. The yellow metal recently broke a downward sloping trend line stretched from January 08. Early-month top on the buyer’s radar.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex MAJORS

Cryptocurrencies

Signatures