With the EURUSD below 1.27, it was time for today's Europe bailout, which just came courtesy of Frau Merkel, who in a press conference with Monti stated the following:
- Merkel says Germany willing to pay more capital into ESM at the start in order to give message to markets
- Merkel says if soldairy is necessary we are ready to react immediately
- Merksel says there is still much money in the European structure and cohesion funds
Of course, none of this is news, and merely means that Germany is delighted to prepay in order to subjugate Europe faster. We expect the kneejerk reaction in the EURUSD to be promptly reversed. But for now some of the weaker shorts have been burned.