Today Finance Ministers from the Eurozone will decide in what manner and at what stage their European Stability Mechanism bailout fund can be used to save a bank from collapse, an essential step in developing the banking union viewed as essential to boosting economic growth in the 17 nation currency bloc.
A blueprint will also be drawn up regarding how much an individual government would have to supply in each bank rescue and which banks would qualify for aid. Additionally, the ministers will discuss who would lose out by the scheme.
According to an unnamed European Union official the ministers ‘will reach a decision on all aspects of direct recapitalisation.’
Today’s discussions act as a kind of precursor to tomorrow’s talks involving not only finance ministers from the Eurozone but from the European Union as well.
However, although guidelines for the ESM bailout fund will be outlined today they won’t be made official until the European Parliament votes on the issue.
During the North American session the Euro declined against the US Dollar after the latter currency broadly strengthened in response to Federal Reserve Chairman Ben Bernanke’s pledge to taper quantitative easing in the US, with a view to bringing it to an end before the close of 2014.
Today’s German and Eurozone manufacturing/services PMI is likely to be responsible for further Euro movement as the day progresses.
Euro (EUR) Exchange Rates As of 08:55 –
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3251 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8581 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4368 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6923 >
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3656 >