In an interview with the Italian daily, Il Sole 24, on Thursday, the European Central Bank (ECB) Chief Economist Philip Lane said that the central bank is ready to use all its options to revive the economy from the coronavirus shock.

Key quotes

“ECB will do everything it can to ensure the current crisis won’t be made worse by a credit crunch.”

“When asked about  a possible new interest rate cut, says asset purchases under Pandemic Emergency Purchase Programme (PEPP) have proven to be particularly effective in the current state of uncertainty, market stress.”

“Being part of the eurozone will help countries such as Italy to respond to coronavirus shock.”

Market reaction

EUR/USD is consolidating the drop to 1.1325 lows amid a broad US dollar comeback, as the risk-off mood deteriorated in late Asia/ early Europe.