In a letter to the head of the EU commission, Mr. Barroso, Chancellor Merkel of Germany and President of France Sarkozy appeal to the Commission to make restoration of credit supply the top priority. The letter also says the EU must reaffirm its commitment to sustainable government finances.
Earlier, Italy said its deficit would reach 3.8% of GDP this year, assuming a 2% slide in GDP.
EUR/USD seems to be paying more attention to US bond markets than stock markets today. US yields continue to rise as the dollar falls, one of those not-infrequent crisis of confidence when investors fear foreign central banks will pull the plug opn their dollar-denominated holdings. The euro holds firm at 1.3065 as US stocks hold near flat on the day. Us 10-year yields are up at 3.03% .
