If they leak it minutes before a World Cup semifinal between two of the biggest countries in Europe, it has to be watered down…

  • Tests conducted on a bank by bank basis using macro -economic scenarios
  • Macro-economic scenarios are differentiated for EU members
  • Adverse scenario assumes 3% deviation from GDP compared to forecasts
  • Test scenarios include sovereign debt shock comparable to markets in early May 2010
  • Banks, cajas and landesbanken on the list of banks tested; 91 banks, 65% of EU banking sector
  • Results to be disclosed on July 23
  • Document text here

The market has been upbeat on the stress tests all day and EUR/USD has revisited the 1.2660/65 area so far. Resistance extends through 1.2675; stops lie at 1.2685 and 1.2700.