The euro held on to gains made earlier this week overnight ahead of a crucial day for the eurozone, with the ECB poised to act to curb soaring borrowing costs for periphery nations.
Later today Mario Draghi and the European Central Bank are expected to expand on an announcement in August when it said it would start buying Spanish and Italian government bonds to ease pressure on those countries' soaring bond yields. The deal was conditional on them first seeking help from the eurozone's rescue fund. Further details will be revealed today. According to reports, one option is for the central bank to waive seniority status on government bonds it buys under a new program, leaving itself on the hook for losses. Ahead of the news, the euro had already gained over one...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
