By Alun John
HONG KONG, June 15 (Reuters) – The euro jumped after the ECB’s governing council said it would hold an emergency meeting on Wednesday to discuss the recent sell-off in government bond markets, briefly distracting traders ahead of a much-watched Fed meeting.
The European common currency rose as much as 0.55% against the dollar to $1.0475, following the announcement of the meeting, which comes after the spread between the yields of Germany and more indebted southern nations, particularly Italy, soared to its highest in over two years.
“My hunch is that this is to do with the blowout that we’ve seen in European peripheral spreads this week, which the ECB talked about following the council meeting last week without giving any commitment,” said Ray Attrill head of FX strategy at NAB.
“This has been something of a weight on the euro this week, but I guess the Fed could easily blow away whatever support the euro draws.
The Federal…
