EU’s Lenarčič: Coronavirus outbreak will have impact on the EU economy

Dhwani Mehta FXStreet

Coronavirus outbreak will have an impact on the European Union (EU) economy, said Janez Lenarčič, European Commissioner for Crisis Management while making a statement on the EU’s response, preparedness and financial support to fight the COVID-19 outbreak.

Additional comments

EU to mobilize over EUR230mln to help the global fight against coronavirus.

EU measures on coronavirus outbreak should be proportionate and coordinated.

Meanwhile, the bloc’s Health Commissioner Stella Kyriakides said that "for the moment WHO has not advised imposing restrictions on either travel or trade," adding, “possible travel restrictions in the Schengen border-free area should be proportionate and coordinated among EU states.”

This comes as the bloc faces a coronavirus outbreak in Italy, with fourth death reported.

EUR/USD off the highs

Amid growing contagion fears, the upside attempts in the EUR/USD pair remains limited below 1.0850. At the time of writing, the spot trades near 1.0825, having faded an uptick to 1.0843 fresh highs following upbeat German IFO Business Survey.

The latest retracement could be also associated with a rise in the odds of a European Central Bank (ECB) rate cut. Eurozone money markets now price in an almost 50% chance of 10 bps ECB rate cut by July vs. a 35% chance seen a week ago.

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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