The fight high spreads between bond yields | 17 June 2022

17 June 2022, EUR/USD

EURUSD trading plan:

The head of the European Central Bank briefed euro zone finance ministers on a planned tool to fight high spreads between bond yields of the bloc's nations, but remained vague about how and when the new scheme may kick. Christine Lagarde explained to ministers in a closed-door meeting the rationale for the new tool, which was still being designed by the bank. Lagarde told the meeting that fragmentation was a "serious" risk that would be addressed, and warned that the bank's commitment should not be put into question. At a news conference after the meeting, the chair of the Eurogroup of euro zone finance ministers, Paschal Donohoe, said ministers did not discuss any conditions that should be tied to the launch of the new tool.

Investment idea: sell 1.0520 and take profit 1.0451.

David Johnson
Analyst of «FreshForex» company
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