Tuesday 11 September 2012

EUR/USD adding to gains, Commerzbank says...


EUR/USD is adding to gains as investors expect the German constitutional court to rule that the country's participation in Europe's permanent bailout fund would be legal, Commerzbank says. EUR/USD has already jumped to trade as high as 1.2819 in the early European session after the court said it would issue its ruling Wednesday at 0800 GMT, despite a last-minute challenge to delay the decision. The bank says the conditionality attached to the ECB's new bond-purchasing facility, dubbed OMT, is nothing new, but is already part of existing rules of the monetary union. "So far the FX market does not seem to question this design flaw. While trade is likely to be in a wait-and-see mode today, the party is likely to continue tomorrow," bank adds. EUR/USD trades at 1.2795.

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