Market news
12.10.2022, 21:35

ECB’s De Cos: Some shocks in ECB downside scenario have materialised

Some shock in the European Central Bank's downside has materialised according to the ECB policymaker Pablo Hernandez de Cos said who crossed the wires late in the North America session. He previously said earlier this week that risks to the inflation outlook in the eurozone remain on the upside and have intensified, particularly in the short term.

He also said today that the UK situation should not be contagious if properly managed. He says this as the UK 20- and 30-year yields hit 20-year high above 5%
following Andrew Bailey's comments, who is the governor of the Bank of England. The government borrowing costs surged again when Bailey told pension funds they had three days to fix liquidity problems before the bank ends emergency bond-buying that has provided support.

Meanwhile, the euro is under pressure as the US dollar remains the favourite. Earlier today, Minneapolis Fed President Neel Kashkari reaffirmed policymakers' commitment to the current rate-hike path, saying the bar for a shift away from monetary policy tightening is "very high." These comments come ahead of  Thursday's US Consumer Price Index reading which is expected to return to a four-decade high. Meanwhile, prices paid to US producers rose more than expected in September, supporting the greenback, according to data released on Wednesday.

Additionally, Reuters reports that the ECB's policymakers are close to deal to change the terms of targeted longer-term refinancing operations and that the decision could come Oct 27. The deal is governing trillions of euros worth of loans to banks in a move that will shave tens of billions of euros off in potential banking profits, sources close to the discussion said.

EUR/USD update

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location