FXMarketAlerts Team
FXMarketAlerts
Published at 05:52 (GMT) 08 Apr
Telegraph: Bundesbank President has warned that the credibility of the eurozone's budgetary rules is at stake and that France's suggestion that the bloc's budget deficit targets be weakened are a "test case" for the rules.
"It's vital that we stick to these rules, because the credibility of these rules is at stake," Bundesbank president Jens Weidmann said "A currency union needs its members to aim for stability... Part of that is having an orderly budget and part of that is sticking to agreements."
France's new finance minister, Michel Sapin, said last week the country would seek a review of its deadline for meeting the EU's budget deficit ceiling of 3%. "France is a test case for the credibility of these new rules," Mr Weidmann said.
On FX some focus on the above warning from ECB/Buba hawk Jens Weidmann. The concerns over weaker budget targets and tensions, could weigh on EUR, EUR/Crosses. Given warning over the credibility. EUR/USD at 1.3744-45, focus on more ECB, Eurozone policymakers comments on budget rules and ECB policies. Ofers 1.3750-60, bids at 1.3720-40, stops below. EUR/GBP at 0.8270-728, range of 0.8270 to 0.8275 - just 5 pips. Focus still on key support at 0.8240. Stoploss below. Offers 0.8300-10. Focus on Ukraine tensions and Donetsk calls for referendum to join Russia, following Crimea accession. WL
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