ECB’s De Guindos: The central bank is flexible to act if yields surge undermines financing conditions

Dhwani Mehta FXStreet

“We will have to see if the increase in nominal yields will have a negative impact on financing conditions,” the European Central Bank (ECB) Vice President Luis De Guindos said in an interview with Público on Tuesday.

Further comments

“If so, we are open to recalibrating our program.”

“Recent rise in yields is partly due to higher inflation expectations in the US.”

“That includes the PEPP envelope, if necessary.”

“We have the flexibility that is needed in order to react.”

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EUR/USD is eyeing a firm break below the 1.20 level, as the US dollar continues to hold firmer in the European session amid intensifying risk-off mood. The spot is down 0.34% so far. Focus shifts to the Eurozone Prelim CPI release.

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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