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Finally. With news commentary that involved talk of deadlocks and disagreement on some occasions yesterday. The leaders of the EU have reached an agreement whereby private bond holders of Greek debt will commit to a 50% haircut on those debts, important to note that this is only the case for private sector debt, not total Greek debt.
Although being short on specific details the European rescue fun boosted its capacity to 1 trillion euros to help shield the euro zone from the crisis. However with many other nations Ireland, Portugal, Spain and Italy feeling the heat can the Euro zone really afford euro wide haircuts? With help being offered to Greece, what incentive is their to these other nations to tighten their belts to 'limit' the damage.
There is talk of Chinese intervention to help support the EFSF, AFP reported “France favors China taking part in efforts to stem the euro zone debt crisis by helping boost its bailout resources, a senior government official said Wednesday.”
An announcement earlier from the EU stated that they will be submitting Eurobond ideas on the November 23rd
At time of writing EURUSD has pierced through the important 1.4000 psychological area and is showing sustained momentum to the upside. European stock markets are seeing strong gains of between 2-4% and US stock futures are up between 0.5-1%