Reuters: Merkel can win EFSF vote without the opposition
She is likely to lose 11 MP’s from from the CDU/CSU and between 2 and 5 FDP members, Reuters reports, but would still have enough support within the coalition to pass the measure without relying on votes from the opposition.
Failure to secure a majority of her coalition would be a big political embarrassment to the Chancellor.
EUR/USD is consolidating gains above the 1.3600 level on optimism that some sort of EFSF enhancement will be deployed to delay the day or reckoning. With the market heavily short of EUR/USD, shorts continue to cover.
We’re now at 1.3630 from 1.3657 highs.