ECB’s Wunsch speaks on fragmentation ahead of emergency meeting
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Commenting on concerns over fragmentation, European Central Bank (ECB) policymaker Pierre Wunsch said that the ECB is "very open to doing something."
Key quotes
"Most of us - probably all of us, actually - are very open to doing something if it's clear enough that there's a problem of markets overreacting or unwarranted fragmentation.”
“But we should be careful not to give too much of an impression to authorities that we will immediately jump to their help in whichever uncomfortable situation they might find themselves.”
In addition, if you are too specific about a new instrument, there's a concern that you're going to lose flexibility. So, we should not over-engineer before knowing what the circumstances are."
Market reaction
EUR/USD is catching a fresh bid on these above comments, having briefly recaptured 1.0500 before ticking lower to 1.0491, where it now wavers. The spot is up 0.74% on the day.
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