French PM: There will be steps to amplify euro-area defenses after German vote

The market smells a deal and is getting some confirmation from Fillon….EUR/USD now at 1.3633.

While any deal to bolster the EFSF is a positive, the devil in Europe is always in the details. We’re taking the worst-case scenario (an immediate Greek collapse) out of play, prompting heavy short-covering. If looking to play from the long-side, be nimble. IF looking to play from the short-side, be patient. Looks like we could see higher levels to sell into near-term.