ECB’s de Guindos: Fragmentation is a significant worry for the central bank
|European Central Bank (ECB) Vice President Luis de Guindos voices his concerns over the fragmentations risk.
Key quotes
Fragmentation is a significant worry for the European central bank.
ECB has always been committed to fighting fragmentation in eurozone.
ECB is speeding up process to ready a tool against fragmentation.
ECB’s tool to avoid fragmentation does not have to interfere with monetary policy that is focused on fighting inflation.
ECB’s governing council has still not discussed details of the anti-fragmentation tool yet.
New tool should be somewhat different to previous OMT tool, as circumstances are not the same.
Anti-fragmentation tool will be different to PEPP, APP or OMT programmes.
Market reaction
EUR/USD is accelerating its decline below 1.0500 amid a negative open on the European stocks while the US dollar rallies hard on risk-off flows.
The spot is down 0.43% on the day at 1.0477, as of writing.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.