Macron: Officially announces new lockdown measures, EUR under pressure

The euro is under some slight pressure (albeit priced in) as French President Emmanuel Macron is addressing the nation.

He has stated that the herd immunity strategy would mean 400,000 excess deaths in France.

Macron says that the second wave of coronavirus will hit France harder and be deadlier than the first wave.

He has also stated that France will have over 9000 covid patients in ICU by mid-November.

The market was expecting confirmation of a four-week national lockdown for which he is currently announcing on television to the nation. 

This had already pressured the euro this week that has fallen some 1.12% since the open.

Restrictions

France will go back into a nationwide lockdown starting this week to try to contain the COVID-19 epidemic that is again threatening to spiral out of control.

Bars and restaurants will be closed and so too will non-essential business.

Moving between regions will not be possible.

External borders ill be closed.

Most schools are to remain open.

Will stain in play until December 1st but the impact will be evaluated in 15 days to see if shops can re-open.

People must stay in their homes as much as possible. 

Will ease closures when the daily infection rate fall back to about 5,000 per day from current 40,000.

Funerals are possible. 

Visits to care homes allowed. 

Work from home will be generalised. 

Key comments

• Need new measures to tackle covid.

• Covid circulating more quickly than we had forecast.

•  All regions are now in high alert regarding Covid.

• We have not done as well as we should have done regarding Covid.

• We have been submerged by the rapid acceleration of Covid.

•  2nd wave of covid likely to be worse than the first wave.

• Triage of patients in hospitals would be unacceptable.

• Need to protect our economy.

• Herd immunity strategy would mean 400,000 excess deaths in France.

• Announces new lockdown measures to tackle Covid-19.

• New national lockdown measures s starting from Friday.

• New lockdown will include schools staying open.

• Signed documents will again be needed to go about one's business.

• Moving between regions will not be possible.

• Bars and restaurants will be shut.

Background

The new measures echo the eight-week lockdown that France enforced in the spring when hospitalisations and deaths caused by the COVID-19 epidemic reached a peak.

France on Tuesday reported 523 new deaths from coronavirus over the previous 24 hours, the highest daily toll since April, when the virus was at its most severe.

Doctors have warned that intensive care units risk becoming overwhelmed.

France's death toll, at over 35,000, is the seventh highest in the world, according to Reuters data.

The prime minister, Jean Castex, also met union leaders and opposition parties to justify the need for stricter measures.

Large swathes of France, including Paris, have been placed under a night-time curfew, but officials say this has not been enough to stop the virus.

France's daily change in new covid cases

October's change

EUR/USD's plunge since France's Covid surge