• Refuses to answer question on the specific situation in Italy
  • EU Council meeting will be important; must see if June summit commitments maintained
  • Credit costs differentials are natural but there is a range beyond which they are not, ie redenomination risk
  • Wide discussion on interest rates; decision was taken by consensus (Suggests some pushed for rate cut today)
  • Negative interest rates on deposits discussed

EUR/USD lower on news that the ECB vote decision was not unanimous. Any vote for a rate move would have been to the downside…

EUR/USD down to 1.3040.