European Central Bank (ECB) policymaker, Fabio Panetta, recently crossed wires during the pre-Europe session on Thursday. The executive board member joins the league of ECB policymakers defying the German court ruling.
Key quotes
ECB is under the jurisdiction of the ECJ (European Court of Justice).
German court ruling addresses the German government.
Must prevent euro area economic divergence.
FX implications
Following the news, EUR/USD extends pullback from 1.0810 to 1.0808, intraday low of 1.0805. It’s worth mentioning that the news also adds to the market’s risk-off sentiment and amplifies the US dollar strength.
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