Euro Jumps On News Of Latest Agreement Between Germans And French As Market Prices In Nth Greek Bailout

Tyler Durden's picture

The EURUSD is pushing higher in the low volume afterhours session after a Reuter report that the German and French delegations have reached an agreement over Greece. Since this is about the 6th "pricing in" of Greek  bailout, we can't help but be extremely skeptical that this short-lived bounce will promptly reverse especially since the USD is about to pop on comparable good news to come out from the Obama meeting with Boehner.

From Reuters:

Euro jumps half a cent to $1.4260 in Asia on news Germany and France had reached a joint position on a financial bailout for Greece . Adds to hopes Thursday's EU emergency meeting might actually make some progress on the impasse over Greek debt. Top private bankers will attend the meeting, which is due to start around 1000 GMT. But dealers all too aware that the market has been disappointed before and euro vulnerable to a pullback. Support at $1.4133 with resistance now at $1.4282.

Still plenty of uncertainty over the US debt ceiling talks, with much political manoeuvring going on. The Fed has been drawing up plans should the country default . USD broadly softer as a result, with its index off 0.5 pct at 74.849. It also edged down to 0.8197 Swiss francs and 78.88 yen. Asian focus on HSBC's flash PMI for China due at 0230 GMT, amid talk it could dip below 50.0. Such a result could rekindle worries of a hard landing, even though recent upbeat GDP data suggested the overall economy was still travelling well.

And from Bloomberg:

Merkel, Sarkozy listened to arguments brought forward by ECB
President Jean-Claude Trichet, who attended part of the meeting,
Steffen Seibert, Merkel’s spokesman said. They exchanged views
with EU President Herman Van Rompuy by telephone,
Seibert said. Joint Franco-German position will  be presented to
leaders at today’s summit in Brussels by Van Rompuy, Seibert

And from the FT:

No immediate details were available but Steffen Seibert, a spokesman for Angela Merkel, the German chancellor, said “a common German-French position” had been agreed and ­discussed with Jean-Claude ­Trichet, president of the European Central Bank, and Herman van Rompuy, president of the European Union.

The breakthrough came after Nicolas Sarkozy, French president, rushed to Berlin to hammer out a Greek rescue plan that could include €71bn (£63bn)
in bail-out funds from global lenders and a €50bn tax on eurozone banks, proceeds from which would be used to buy back 20 per cent of Greece’s €350bn in outstanding debt.

The proposals, included in a plan circulated by the European Commission ahead of an emergency summit on Thursday, also include a bond exchange programme under which private owners of Greek debt would be encouraged to swap their holdings for new 30-year bonds. The swap plan could reduce Greek debt by an estimated €90bn. It would be offered, with credit sweeteners, to owners of bonds due in the next eight years.


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IQ 145's picture

 +100 Very. Sell the EUR short; right now.

Non Passaran's picture

I went short euro at $1.44, sold that last week@ $1.40 and I am ready to go in again!
But I would have made more if I simply went long gold...
This time gold may stay steady for a week or so, tough.

camoes's picture

I think George Constanza is running the market, seriously!

Max Hunter's picture

That was the best Jerrry!.. THE BEST !!!

Sudden Debt's picture

Rock Rock Rock the boat, slowly down the waterfall...

This all is Novacain for the soul.

koeleköpke's picture

sd as belgian, you should be a happy man today

Sudden Debt's picture

Today it rained again over here...

I have 2 kids running like they're on speed around the house who really need to go out and play...

My wife is all stressed out because of it, so chances are I ain't getting any tonight.

Best summer ever... it hasn't stopped raining for weeks now.

I just had to go on vacation when the weather over here was like all heatwave and come back when it started raining...

I'm going nuts over here and by this time around tomorrow, I'm out of beer and the shops will be closed because of the national Holiday.

The most funny thing was watching our King yell to everybody on television about our government and that we all have to get along or our economy will go down the shitters. WHERE HAS THIS GUY BEEN FOR THE LAST 3 YEARS?!


But hey, I bet they'll have beer at the fireworks tomorrow.


koeleköpke's picture

is it correct that he has a bastard daughter


gwar5's picture

I was visualizing Benny Hill there for a second running around and prostrating himself before a king like on Chitty Chitty Bang Bang.

Sudden Debt's picture

I guess you just drank all your beer to he?

I'm European... over here, not everybody is 400 pounds overweight.


mynhair's picture

SD, NO BEER?  Poor Planning makes for Pissless Performance...

Sudden Debt's picture

I had 2 friends coming over who drunk my supply... I didn't really count on that.

I've never been in the army... I guess it's there that you learn how to cope with problems like that...

Bad logistics can cripple even the best armies.

Another line in the book of life lessons I guess.

mynhair's picture

My sincerest sympathies.

Ghordius's picture

A Belgian without beer. The world is truly coming apart. Hang on, SD!

PY-129-20's picture

Raining here too.

Ask me about that democracy thing - never voted for the Euro, was never asked if I want to give up that Deutsche Mark, never asked to bailout anyone, never asked to vote for any of these clowns in Brussels  - listen, things aren't sunny here as well. Low income Germans lost a staggering 23 % of their income since 2000. There is only one group in Germany - the well earning group that benefited since 2000 (so just >10 % of the population).

I look around and all I see here in my country - more closed shops, more closed public baths, more closed kindergartens, schools - sure, we don't need them. Oh, we don't have any debt at all...

Ever heard of that agreement in Germany - where West Germany sends money over to former East Germany - to rebuild it? Soli - as in solidarity? How did that turn out?

I give you a hint: Things in Western Germany got worse since then - West German cities are on the brink of bankruptcy, while some Eastern munis just payed off all their debt (with the money of that soli of course). Look, I am not saying everything went good for East Germans - it was hard time for them too...

Now I am in this union. Hey, I am not an enemy of the European idea - but do I think the EU is the best we can accomplish in Europe? Nope. It's not.

I do not want to rebuild Greece as they say now in every German newspaper - do you know what kind of words they use?


Hey, what happened? Did we invade Greece again? I might have missed the part.

Because I didn't see those over Athens?

Why aren't we honest - just declare that there is no German nation anymore - no Austria, no France, no Greece, no Belgium - they ceased to exist - just the United States of Europe (you may like another name for it)

Or we go the opposite route - back to where everything was before the Euro - which according to some German analysts would mean the end of the European idea / union / culture - whatsoever - the end of everything else...

Just imagine, Sudden - dream with me - we might have a good chance to win that Soccer world cup...

sorry for the rant part - hey I've nothing against those Greek people, nothing against any other just pisses me know - the last decade - for a normal German it was a lost one - no investment at all, closing everything we liked or had (trying to solve our debt issues), losing income, more tax, our society breaking more and more apart, getting ridiculed for that manufacturing (and our business elite are busy to ship that part to China too - they always tried to copy their American cousins)...

And now they want to switch off the lights on the Belgian highways...

Reptil's picture

That's pretty dangerous with all the potholes. Nearly killed me once when I hit one with the front wheel of my old bike.

I think I get their plan: They're shit scared of the bond market, and now do a funny dance to distract from the issue of their huge mistake, while they hope the repugnidemocraps in the new world finish their drama play. Because they really expected summer 2011 to be like summer 2010. Pissmonkeys.

What irks me the most (FWIW) is that they destroyed a perfectly good idea.
Eliminate bank tariffs, enable trade, let nations grow towards each other slowly (or not, if it doesn't work out)

But noooo, they had to corrupt everything and everyone they dealt with and wreck free capitalism in the process. Reward hollow promises with wads of community cash. Try to build empire on sneaky small print in treaties with the purpose of replacing Constitutions with a pieces of crap. Open backdoors to destructive forces that no one really wants here. Fuck them and everything they stand for. If tomorrow they mess it up, or pretend and then in 2 months fuck up, that means conflict. I'm not going to let them do a fucking TARP on us.

Rain here too. I welcomed it, working in a room with hot equipment. The birds seemed to like it. Got my M2000 NATO issue Gasmask in the mail today. The attire of modern man.

Hey, at least it's not black rain.

PY-129-20's picture

"If tomorrow they mess it up, or pretend and then in 2 months fuck up, that means conflict. I'm not going to let them do a fucking TARP on us."

I am with you.

PeeTee's picture


I always liked the European idea.
And I somehow still do. Peace and cooperation and so on.

Except for the fact that the political technocratic elite is just too keen to fuck everybody in the ass. But what's the alternative? Back to backward nation states?

Democracy is failing, in EU and US. So what are we going to do about it?

Bob's picture

Yes, you still have plenty of time to restock on beer, fer godsake man!

caerus's picture

goddam if belgian beer aint the best in the world

Trillax's picture

Always been partial to German beer myself, but Belgian definitely doesn't suck.

caerus's picture

agreed...Reinheitsgebot...fine pilsners, etc...depends on my mood but 14% abv belgians warm my blood  im also keen on good ipas we're getting our brewing shit together here in the states finally

mayhem_korner's picture

+1 Belgian beer...very crisp. I like Canadian beer, but only in Canada.  The States waters down the imports, but they make some good brew in hockeyland.

baby_BLYTHE's picture

My boyfriend introduced me to Hoegaarden.

If you haven't tried it, I seriously recommend. 

PeeTee's picture

Since I'm Belgian, too, I have to jump into the discussion.


Try Hoegaarden Grand Cru. That's the stuff.

(been drinking that mainly when I was 16-17 though).

IQ 145's picture

 Does the King speak Flemish, or Walloon? Don't you have a neighborhood pub?

Yen Cross's picture

  You seem, to have found your Pub? 1.45   How does it feel to sit in your personal (OVAL OFFICE ?)

oogs66's picture

Can't believe that market believes it. Insane. Even if it works, it is about a month before we are back to the bailout table?

Sudden Debt's picture

In 2 decades from now, we'll all make jokes about this.


disabledvet's picture

with you around i haven't found myself ever waiting.

Spitzer's picture

will it be a big joke when oil is priced in Euro's ?

This is Euro freegold transpiring right before our eyes.

camaro68ss's picture

Its all about the rally bitchez!!!! waaaahooooo PAR-TAY!!!!!

Aductor's picture

Let's pretend saving Greece say 99 times and I am confident everyone will feel the warm and cosy wealth effect.

max2205's picture

Beatleguese beatleguese.... I am NOT saying it the third time

FunkyMonkeyBoy's picture

er, i thought Italy was the problem now, or is that fixed? or is it next weeks problem? or was it never a problem?

This 'world economy' is just one steaming pile of the worst kind of stinking s**t.

Ghordius's picture

Italy can't be the problem yet, too big and skittish to handle for profit now.

Hansel's picture

Germany and France reached a "joint position"?  WTF does that even mean?  They are smoking a spliff?

camoes's picture

Markets freaking up about Spain in 1...2...3...

Cman5000's picture

It's all clownage ... Now back to Godzilla, Rodan, Mothra ...

gwar5's picture

The Greek bailout has been priced in so many times surely the entire debt is paid off by now.

Sudden Debt's picture


They might even be running a surplus by now :)

chump666's picture

48 hrs before the chaos erupts, low volume bulltrap.  There will be no bailout for Greece time-warp redux.  Germany and France (particularly France) have lost the plot, trying to push out rating agency influence in a bizarre old Europe communist asset cartel supporting thang.  The attempt is managing a full default without calling it a default...The EZ is a mess.  Germany should know better that socialist asset supporting conjobs collapse re: East Germany. 

Gotta love those French CDS's widen...

spanish inquisition's picture

I am guessing that no one from Greece was in the room.