ECB's de Cos: Reasons to maintain recommendation on bank dividend cap disappearing

Eren Sengezer FXStreet

European Central Bank (ECB) Governing Council member Pablo Hernandez de Cos announced on Friday that they will communicate their decision on bank dividends in July or September, as reported by Reuters.

"Now the macroeconomic situation has changed and the arguments that would justify extending or maintaining the recommendation are progressively disappearing," De Cos explained.

Market reaction

These comments don't seem to be having a significant impact on market sentiment. As of writing, the Euro Stoxx 50 Index was down 0.15% on the day at 4,115.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD keeps the offered stance just above 1.1700

EUR/USD is coming under heavy selling pressure in what has been a rather grim start to the new trading week, with the pair now trading close to the 1.1700 support area as the US Dollar stages a solid rebound. The prevailing flight to safety mood continues to favour the Greenback, as investors react to the escalating conflict in the Middle East and trim risk exposure across the board.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold trims losses, back below $5,400

Gold now surrenders part of the earlier advance past the $5,400 mark per troy ounce at the beginning of the week. Indeed, the precious metal’s strong uptick remains fuelled by increasing geopolitical tensions in the Middle East amid the intense demand for safer assets.