Bank Of England on Stress Tests, EUR/GBP Slides


The Bank of England released rules of stress tests that - in Mark Carney’s view, should ensure the UK banks can withstand shocks without cutting lending to the UK economy.

only 50b GBP+ banks will be tested
no immediate plans to test units of foreign banks
rules to apply until 2018

Generally Carney thinks the UK banks are already in a solid position. The document seems to have a minimal impact on the market, yet the GBP is gaining. EURGBP has defended a resistance with a nice pin-bar and has slid since.