Trichet notes that an overwhelming majority of the governing council of the ECB support the program.
The ECB president also mused that he can envision a permanent crisis resolution mechanism within the Eurogroup, something German strongly opposes. Germany prefers a mechanism which would allow for the orderly insolvency of member states.
And you think there are divisions within the Fed?
In normal times, a Germany versus the rest of the Eurogroup squabble would be a reason to sell EUR/USD. These days, we’re so focused on QE, it will be interesting to see if any one notices the rising tensions within Europe.
If the market continues to take profits after an impressive month-long rally, blame German pushback at the notion of European bailouts becoming institutionalized. Germany would be quite happy with that outcome on many levels….
