The Euro held relatively calm following the release of the stress test results. EUR/CHF rose initially to 1.1575 but retreats afterwards to 1.1520, 30 pips below the price it had before the releases. Similar movements showed EUR/GBP that climbed to 0.8780 but pulled back after a few minutes to 0.8755. Against commodity currencies the Euro turned lower approaching session lows versus the Kiwi and the Loonie.
The results showed that 8 banks failed. The European Banking Authority said: “Eight banks fall below the capital threshold of 5% CT1R over the two-year time horizon, with an overall CT1 shortfall of EUR2.5 bn. Sixteen banks display a CT1R of between 5% and 6%.”
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