Earlier we noted that the ECB is prepared to step in with emergency liquidity in the event voters in France should make a “mistake” on Sunday.
Specifically, Ewald Nowotny told reporters the following on Saturday:
If there should be problems for specific French banks liquidity-wise, then the ECB has the … ELA, Emergency Liquidity Assistance, but we don’t expect of course any special movements.
Well that’s fine and it’s probably just as good a reason as any to furiously buy any dips, but on the off chance you get any bright ideas about fleeing to the world’s safe haven asset par excellence amid FX carnage tomorrow night, Thomas Jordan wants you to know that you probably shouldn’t fucking try him.
Because in the event a pair of “unreasonable” candidates make the runoff in France, he’s got “room” to step up the FX interventions.
Via Bloomberg
Swiss National Bank President Thomas Jordan says in interview with Bloomberg TV in Washington that officials are in no rush to normalize monetary policy and are prepared to defend the franc if needed following the French election.
- SNB observes situation “very closely” and “we hope that a reasonable candidate can win, somebody who is in favor of free markets. But we cannot exclude that there will be more pressure on the Swiss franc”
- SNB has “more leverage” on interest rates and room to step up currency-market interventions
- “We will maintain our expansionary monetary policy as long as possible. We are not in a hurry at all” to normalize
