ECB's Vasiliauskas says extraordinary meeting may be called over coronavirus, EUR/USD off the highs

Vitas Vasiliauskas, a member of the European Central Bank, has said that the Governing Council may call an extraordinary meeting to decide on a response to the coronavirus outbreak.

The Lithuanian policymaker has added that he expects demand-orientated shocks caused by the virus. 

Additional quotes:

Need to see first how the virus is affecting the real economy.

The virus is a very important aspect and possible risk.

Outbreak seems more like a supply shock in the beginning.

But now the reaction is 'very active', can also expect demand-orientated shocks.

ECB must observe the situation very carefully.

Does not think that the ECB can do something in the March meeting.

We are living in the regime of wait and see.

EUR/USD has responded by sliding from the three-week high of 1.1027 and retreating toward 1.10. The currency pair has been advancing as the dollar retreating amid growing odds for a rate cut in response to the illness. 

The ECB's main lending rate stands at 0% while the deposit rate is at -0.50%. The bank is buying bonds at a pace of €20 billion since November. It may expand its QE program or announce other measures. Christine Lagarde, President of the ECB, said on Thursday that she does not see an imminent rate cut.