EUR/USD closed above 1.0700. The ability of European regulators to restore some calm to the AT1 bond market seems a necessary condition for maintaining the pair’s support, according to ING economists..
The impact on the EUR of the ECB comments is probably not very significant at the moment
“The impact on the euro of the ECB statements is probably not very significant at the moment. First of all, unlike on other occasions, it seems that there have been no communication gaps between the markets and Lagarde at the press conference of the Second, higher rate expectations on the back of hawkish rhetoric are not a near-term euro driver at the moment, as the common currency trades strictly in line with risk sentiment and news about the banking sector.
“The ability of European regulators to restore some calm to the AT1 bond market seems a necessary condition for maintaining EUR/USD support, although we think some USD recovery is possible until the Fed meeting.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
