ECB There aren’t many eurozone banks that have taken risks as SVB The ECB member Madis Muller stated in his address
ECB Statement reaction on EURUSD
Based on the ECB memeber’s remarks above, the EURUSD pair is continuing its recovery mode above 1.0650. At the time of writing, the pair is trading at 1.0654, up 0.48% on the day.
The Remarks as as follows
“Credit Suisse has been having issues for years”
“The SNB’s engagement in Credit Suisse has simplified decision-making.”
“There aren’t many eurozone banks that have taken risks like SVB.”
“There is no evidence of persistent inflationary pressures abating.”
“Uncertainty in banking complicates communication.”
“The most recent inflation predictions foresee more rate hikes.”
ECB will have an easier task to increse after Credit Sussie isssue is resoved
ECB sources said that the Swiss National Bank’s move to overnight lend $50 billion to Credit Suisse. Which helped to stabilize financial markets. And gives many policymakers the trust to carry out the anticipated rate increase.
According to four sources familiar with the situation who spoke to Reuters. Policymakers at the European Central Bank only decided to make another significant rise in interest rates on Thursday. After Credit Suisse (CSGN.S) received a lifeline and markets stabilized.
On the first day of their meeting on Wed, policymakers reportedly anxiously perused their phones and regularly received market updates from ECB staff. As worries about Credit Suisse pulled down shares in banks across the euro area. And fueled concerns about a new collapse in finance.
