ECB and big banks continue to clash over Brexit – FT

Dhwani Mehta FXStreet

Speaking to the Financial Times, the European Central Bank (ECB) said that the central bank will deepen the pressure on the big European banks, asking them to prepare for Brexit once again as the summer draws to an end.

"Some banks have substantially reached their target operating model already or are well on track towards that target. There are other banks that still need to make progress, both in terms of relocating assets and staff. Our joint supervisory teams have engaged with these banks to make sure there is a shared understanding of the path towards the target operating model,” the ECB said.

The clash between the central bank and the bloc’s big lenders continue, as the odds of a no-deal Brexit rise amid a growing tussle between the UK and Brussels.

Market reaction

EUR/USD has once again bounced-off the strong support at 1.1757, heading back towards 1.1800, as the dollar bulls take a breather while attention turns towards the ECB policy decision due on Thursday.

EUR/USD reverses early losses, focus on bond yields

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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