You know Sarkozy has the upper hand when he makes clear that France and Germany have no difference even though they clearly do. He also says they speak almost daily.
The French government was extremely vocal about Germany’s ham-handed short-selling ban and the market punished the euro accordingly. Sarkozy is no trying to show unity for the sake of the children…er, euro.
EUR/USD is consolidating gains below 1.2600 after a chaotic short-covering rally.