Bank of England Deputy Governor Sarah Breeden said in a program in the United States (US) during the European trading session on Friday that the ongoing war in the Middle East has raised the odds of market stresses combining. Breden also said, “The vulnerabilities that have preceded past crises have not disappeared. They have re-emerged elsewhere. Across private markets, government bond markets, and in stretched valuations, you can hear the familiar echoes of leverage, complexity, concentration, and opacity. If some of these crystallize simultaneously, we may be in for a rocky ride.”
Market reaction
No response observed by the Pound Sterling (GBP) after BoE Breeden’s remarks. GBP/USD trades in a limited range around 1.3530 since the opening.
Source: https://www.fxstreet.com/news/boes-breeden-iran-war-raises-the-odds-of-market-stresses-combining-202604171039
