Euro in solid rise after the news of the emergency meeting that the ECB led by Christine Lagarde has decided to call for today.
A spokesman for the European Central Bank specified that “the Governing Council has called an ad hoc meeting, for Wednesday, to discuss current market conditions”, after the strong sell-off that hit euro area sovereign debt. , in the wake of the European central bank’s failure to launch an anti-spread bazooka last Thursday, on ECB-Day.
On the forex market, the euro advanced against the dollar by approximately 0.50% to $ 1.0465.
The dollar is currently down about half a percentage point, -0.46%, against the yen, to JPY 134.85, on the day Jerome Powell’s Fed could announce a 75bp monetary tightening, in order to counter US inflation.
The pound rises on the greenback by 0.18% to $ 1.2012; the euro rose slightly against the yen (+ 0.08% to JPY 141.22) and rose 0.35% against the Swiss franc to CHF 1.0471. The EUR-GBP ratio grows 0.39% to 0.8716.
The trend of the dollar in these hours, which retraces against the main currencies, must not be misleading.
The Dollar Index remains solid at 105.3, after having tested 105.65 on the eve, rising to a record since December 2002, therefore in 20 years, supported by speculations of an increasingly hawkish Fed in its process of anti-monetary tightening. inflation.
After a two-day meeting of the FOMC, the monetary policy arm of the Fed, the US central bank will announce its rate decision at 20.00 Italian time.
Returning to the ECB, the emergency meeting is aimed at examining the market conditions following the ECB-Day last Thursday when, while undertaking to counter a possible risk of fragmentation of the euro area, the president Christine Lagarde did not unearthed any new concrete measures to lock down Eurozone government bonds.
There was a strong surge in ten-year BTP rates, which even exceeded the 4% threshold, flying to the record since 2013, against a BTP-Bund spread that rose to 250.
At the same time, the ECB announced a 25 basis point rate hike in July to counter inflation, a subsequent hike in September that could be larger, and further monetary tightening beyond September.