German Chancellor: Coronavirus numbers are ‘still far above target’

Ross J Burland FXStreet

The German Chancellor Angela Merkel has stated that the coronavirus numbers are ‘still far above target’ and that the partial lockdown will have to be extended until Jan. 10.

With coronavirus infections on the rise, German officials announced in October new restrictions and a partial lockdown for the month of November to try and bring COVID-19's spread back under control.

Bars, cinemas and clubs have been be closed, restaurants have been limited to delivery and carry-out service, and people have only be allowed to meet outside with members of another household in groups of no more than 10.

Market implications

The ECB has put in place a set of monetary policy and banking supervision measures to mitigate the impact of the coronavirus pandemic on the euro area economy and to support all European citizens.

''Extraordinary times require extraordinary action. There are no limits to our commitment to the euro. We are determined to use the full potential of our tools, within our mandate,'' Christine Lagarde, President of the ECB wrote.

The euro has been sailing with the wind in its sails as the US dollar plunges to fresh 2 1/2 year lows as the markets cheer the combination of prospects of a faster economic rebound and vaccine distributions as well as US stimulus progress.

EUR/USD is now trading at the 1.21 area and highest since April 2018.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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