We have just been flooded by a host of comments over Reuters firstly German President and ex-IMF Chief Koehler saying it was in Germany’s interest to stabilise the EZ by contributing to a Greek rescue package. Nothing new here of course but there has been renewed urgency in German comments over the last 24-hours perhaps highlighting the gravity of the Greek situation.
Trichet comments were equallyunexiting. What got the market going was a comment that the EU/IMF want Greece to cut the deficit by 10% of GDP in 2010/2011 with Reuters quoting sources. This is a tough ask of course but the market liked the news and EUR/USD traded back into the 1.3270s.
