ECB's Holzmann: There will be discussions within ECB on coronabonds

Eren Sengezer FXStreet

European Central Bank policymaker Robert Holzmann noted that there will be discussions within the ECB on coronabonds but declined to comment further on the matter.

"The idea behind the PEPP was to make liquidity rapidly available, rules were loosened to make sure enough assets were available to buy," Holzmann explained. "Rules for the PEPP will be set in future."

Regarding the ECB's recommendation to banks on delaying dividend payments, Holzmann said that he is supporting that recommendation.

Market reaction

The EUR/USD pair edged slightly lower and was last seen trading at 1.0975, erasing 0.65% on a daily basis.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD clings to daily gains, still below 1.1900

EUR/USD manages to reverse two daily pullbacks in a row and advances modestly on Thursday, hovering around the 1.1880 zone amid the inconclusive price action around the US Dollar. Meanwhile, weekly Initial Claims rose more than expected last week, while attention is expected to shift to the upcoming US CPI data on Friday.

GBP/USD picks up pace, hits 1.3640

GBP/USD trades with modest gains around 1.3640 so far on Thursday. Indeed, Cable looks to leave behind the weakness seen in the first half of the week in a context of an equally erratic performance in the Greenback and disappoting UK data releases.

Gold stays offered below $5,100

Gold keeps the choppy trade well in place on Thursday, navigating the area below the $5,100 mark per troy ounce amid the lack of clear direction in the Greenback, declining US Treasury yields across the curve and caution ahead of Friday’s publication of US CPI.