Reuters is reporting on Friday that the European Central Bank (ECB) has written to banks telling them to analyze the gas-stop impact.

Additional takeaways

“The ECB is to discuss readiness with executives by the end of September.”

“The ECB is concerned over potential wave of defaults via energy crisis.”

The European Union (EU) energy ministers are meeting this Friday to discuss ways to tame energy prices, which have surged as Russia has halted most gas flows to Europe in response to European sanctions.

Market reaction

EUR/USD is trading at 1.0084, retreating from daily highs of 1.0112 following the recent ECB commentary. The spot is still up 0.90% on the day.