ECB’s Mersch: Outlook has suddenly taken a turn for the worst

Dhwani Mehta FXStreet

The economic outlook has suddenly taken a turn for the worst, the European Central Bank (ECB) Executive Board member Yves Mersch said in a scheduled speech this Friday.

Mersch added: “it is our firm intention to play our role in the second wave of the coronavirus pandemic.”

Additional quotes

“The ECB is encouraging the fiscal authorities to spend more.”

“Nothing ruled out, nothing given on recalibration.”

“The ECB to discuss the flexibility of instruments in December.”

Market reaction

EUR/USD is attempting a bounce from daily lows of 1.1661, despite the policymaker firmly hinting at more easing in December. Upbeat German growth numbers could be playing a part in supporting the bounce, as the spot trades flat at 1.1676, as we write.

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.

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