ECB’s de Guindos: Fragmentation is a significant worry for the central bank
FXStreet · 22 Jun 2022 161 Views

European Central Bank (ECB) Vice President Luis de Guindos voices his concerns over the fragmentations risk.

Key quotes

Fragmentation is a significant worry for the European central bank.

ECB has always been committed to fighting fragmentation in eurozone.

ECB is speeding up process to ready a tool against fragmentation.

ECB’s tool to avoid fragmentation does not have to interfere with monetary policy that is focused on fighting inflation.

Market reaction

EUR/USD is accelerating its decline below 1.0500 amid a negative open on the European stocks while the US dollar rallies hard on risk-off flows.

The spot is down 0.43% on the day at 1.0477, as of writing.