- Situation is not yet fully back to normal
- Liquidity has returned to the market at levels considerably above that in early May
- It is “not entirely correct” to assume ECB is the only buyer of govt bonds
- Confident measures ECB has decided will prevent rise in short-term money market interest rates
- ECB is ready to act at any time on any deterioration of markets or undesireable rise in interest rates
- ECB support can lead to dependency of banks if support lasts longer than necessary
- It is not the job of the ECB to offer ratings or publish its internal evaluations
- It is very frustrating that rating agencies are still acting very procyclically
- ECB will do everything to be less dependent on rating agencies
- Programme of buying bonds is going well so far
EUR/USD has given ground during Asian trade, presently down at 1.2260 from North American close Wednesday up around 1.2310 with the latest rally having run into a brick wall up at 1.2350/55. Worries surrounding Spain still very much to the fore.
Sean mentioned earlier buy orders noted at 1.2250/60 with stops just below.
Not much in the way of euro zone data today:
08:00 GMT: ECB monthly report
09:00 GMT: Euro zone April construction output