Euro up 30 pips on the headline to 1.3560.
A story from Bloomberg cites “two euro-area central bank officials” who say the effect of ECB easing could be counteracted by bank cash hoarding until bank stress tests/reviews are completed. The tests are due around October.
This shouldn’t come as any surprise and I’m not sure this euro bounce will last. ECB officials have been clear that QE is still some ways away and they will want some time to assess the impacts of the June 5 rate cuts. The TLTROs won’t even take place until September.
“I’ve got nothing left”
