German finance minister Steinbrueck proposes a tax on share trading, more transparency in executive pay and restrictions on speculation. Steinbrueck is a member of the Social Democratic Party and not Chancellor Merkle’s Christian Democrats. With a German national election set for this fall, perhaps Steinbrueck is striking out on his own, rather than speaking for the government. Either way, markets won’t like it.
EUR/USD has seen huge swings over the last hour with the market apparently misjudging the size of the month-end dollar buying. EUR/USD dipped from US highs of 1.2729 at the fixing but is more than a cent of the lows seen after poor US GDP data. 1.2750, 1.2780 and 1.2810 are resistance levels above the market. 1.2690 is modest support. Where’s it going? I can honestly say I haven’t a clue.
