The market is seemingly impressed with the up-sizing of the European Stability Mechanism, though only a fraction of the so-called fund will be backed by actual cash money.
EUR/USD is in rally mode and has its sights set on 1.4280 and stops perched above that level; expect some barriers at 1.4250 and 1.4275 along the way.
I’m wildly skeptical that this fund will have anywhere near EUR 700 bln to deploy when push comes to shove but that is immaterial at the moment. The market is in bull mode and should not be faded…I broke my rule once last week and paid the price…
1.4238 is the high so far.
UPDATE at 19:00 GMT: Juncker says Ireland and Portugal were not discussed today…