"The ECB will do whatever it takes to preserve the euro," he said, which sent the euro up about 30 ticks against the dollar. "Sharing national sovereignity" on the EU level is to come, he said.
Speculation surrounding the possibility of the European Central Bank granting a banking license to the region's permanent rescue fund, the European Stability Mechanism, may provide some support in the near term, he said, in emailed comments. Such a move would give the ESM more firepower to buy distressed government bonds.
Remarks by an ECB policy maker Tuesday acknowledging that there were some arguments in favor of such a move helped spark a modest rebound by the euro and lifted overall investor sentiment, analysts said, while noting that Draghi and Germany have strongly opposed the suggestion in the past.
