German Chancellor Angela Merkel is talking tough on euro zone debt today, insisting that investors also help pay for future crises. Her tough talk is one of the reasons that debt ridden euro zone countries have bond yields soaring.
Bloomberg BusinessWeek offers this on the coming debt rules for the euro zone:
Measures being drafted by the European Union will result in rules with “more bite” to protect the euro, Merkel said in a speech today in Bruges, Belgium. Along with steps to prevent EU members running up excessive debt, a crisis mechanism enshrined in EU treaties is necessary for the longer term, she said.
Merkel’s stance isn’t hurting the euro today, though. Instead, the euro is heading higher in forex trading as traders focus on U.S. election results and speculate about how much the Fed will ease monetary policy.
Today, it’s all about the U.S. dollar — and U.S. dollar weakness.
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