Reuters reports that the German finance ministry is proposing a ban on naked short selling of an unspecified group of shares, perhaps all shares, not just those of financial institutions.

Since the original ban was received so badly, I can’t imagine a broader ban will be greeted favorably by markets.

EUR/USD has bounced modestly from session lows at 1.2175; it now trades at 1.2215.

UPDATE: The document references above also proposes a ban on EUR/USD derivatives that are not intended for hedging.