EUR/USD Rates May Extend Slide Lower on Covid-19 Second Wave Fears

European Economic and Financial News (EFSM) provides a weekly overview of the EUR/USD market, along with analysis and commentary. The following article gives a preview of this week’s EFSM. EUR/USD has seen a significant slide lower on both Thursday and Friday, with commentators warning of further market turbulence.

European Economic and Financial News are the market’s most reliable source of news and commentary on developments in the global economy and financial markets. This week’s market review offers a full view of what is happening in the currency markets, including commentary from market participants and news reports from European governments.

For example, in a Market Review on European Economic and Financial News, EFSM reports that “the United Kingdom is going to exit the European Union,” citing statements made by Chancellor of the Exchequer George Osborne, as well as Prime Minister David Cameron. These statements come in the wake of recent EU debt talks between the UK and its EU partners and come as a surprise to many observers. In addition, European Central Bank (ECB) Governor Mario Draghi’s comments on Friday evening have also caused a stir. Draghi said that the EU and the United Kingdom are “moving closer” towards a new relationship, while suggesting, “The EU is getting itself into an unmanageable situation.”

In a Market Review on European Economic and Financial News, the Economic Bulletin of the European Union highlights, “The Eurozone economy is in a deep depression.” Economic analysts have suggested that the situation may be similar to the Great Depression of the 1930s, and that the EU could be headed for a major crisis.

Another Market Review on European Economic and Financial News examines how the news will affect the UK’s decision about whether or not to stay in the EU. Some observers believe that the decision could hinge on what the United Kingdom’s exit terms would be, and whether it could be accomplished on its own, or in partnership with other countries. Others are urging the United Kingdom to stay in the EU, arguing that the current economic circumstances make it in the best position to negotiate its exit.

A third Market Review on European Economic and Financial News examines the latest European Central Bank forecasts, which show that the EUR/USD is unlikely to rebound immediately after a major fall last week. The Eurozone economy has seen a significant decline in the last few months and has seen a number of indicators hit negative for some time.

European Economic News also reports on the outlook for the US economy, which is expected to grow at a slow but steady pace over the next several quarters. Over the weekend, the Dow Jones Industrial Average (DJIA) fell over 400 points, following comments from Federal Reserve Chairwoman Janet Yellen, who said that inflation is likely to remain subdued until late this year. In addition, Bank of America Governor Henry Paulson warned that interest rates are likely to remain stable for a long time.

European Economic News also features a report on the European Commission’s recent discussion of the possible implementation of the euro area financial bailout scheme. The Financial Stability Board (FSB) is due to hold a meeting on October 5th, where it is expected to set out its proposals for the new rescue plan. The new plan would involve the creation of a new European fund for banks in the form of a European depositary receipt scheme and is likely to be passed on to member states before October 5th.