Ewald Nowotny having his say
- We have hundreds of millions of euros to use against insufficient liquidity
- Is seeing stabilisation in markets after initial surprise
- If banks have Brexit trouble we will provide liquidity
For now the initial reaction looks to have run its course. Before I clocked off I mentioned that the moves when the UK opened would set the tone. We're still volatile but it's a tad more controlled. The US open will be another potential big market mover as the yanks have their say.
I don't expect the pound to run back up to 1.50 but there is a good chance we see some sizeable profit taking towards the end of the day. That might pick up anyway if 1.40 breaks. That, at the moment, is the big line in the sand.