At 5 PM EST, 21:00 GMT, the Treasury will release the official results of the stress test. Most of the details have already been leaked, it would appear as there has been little push-back from the banks suggesting the leaks were incorrect. Most firms will have conference calls with investors to go over the results.Those that will require fresh common equity will have a month to produce a plan. Most will likely have an outline ready to go by tomorrow, I’d imagine. The market won’t like waiting yet another month.
Unless there is a radically different outcome to the test, expect markets to remain hunkered down in consolidation mode ahead of the US employment report tomorrow.
EUR/USD heads into the close at 1.3381 after holding above 1.3340, the 61.8% retracement of the range after the ECB: 1.3260/1.3470.
