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EUR 500bln Lending Capacity of EFSF/ESM is a Minimum According to a draft ESM Treaty

ESM board of governors may decide to raise combined ESM lending capacity, according to draft ESM Treaty.

ESM Treaty will enter into force when countries representing 90% of subscribed capital ratify it according to the draft.

Collective action clauses will be introduced in all new Euro-zone bonds one month after ESM treaty enters into force.

Euro-zone country can only apply for ESM for help if it started ratification of fiscal compact treaty.

ESM’s EUR 80bln paid-in capital is still to be paid over 5-years, but any Euro-zone country may pay it quicker.

Merkel; Euro crisis can’t be resolved overnight

* compares crisis fight like a marathon

* crisis is one of debt, not confidence

* much has been achieved in fighting crisis roots

ECB’s Nowotny says interest rate decrease is possible

Eur/Usd made fresh session low of 1.3437 on news.

Forex Market Outlook 10/20/11

By Mike Conlon, ForexNews.com on Oct 20, 2011

This morning all eyes are on Athens where the Greek rioters are protesting against further austerity measures which are to be voted to ensure that Greece is taking the steps necessary to continue the bailout discussion. The Troika will be reporting the economic state of affairs in Greece but so far the sentiment has been that that was Greece has done is insufficient to date.

Forex Market Outlook 10/19/11

By Mike Conlon, ForexNews.com on Oct 19, 2011

Yesterday’s market turn-around exemplifies the type of market action we may continue to see until the Euro debt crisis is finally resolved to the satisfaction of the world. Yes, I said the world. Markets yesterday were selling off on lowered expectations that this weekend’s European summit would produce that resolution, but a rumor hit the tape from a newspaper in Euro that said that France and Germany had agreed to expand the size of the ESFS to 2 trillion euros, much larger than had been previously agreed upon.

Forex Market Outlook 10/18/11

By Mike Conlon, ForexNews.com on Oct 18, 2011

With the overhang of the realization that indeed Euro zone leaders will not have a resolution in place by next week like the G-20 leaders asked for, it is now questionable what exactly Merkozy were referring to when they claimed to be able to have something ready by early November. Is their timetable still in play? From where I sit, it doesn’t seem likely.

Forex Market Outlook 10/17/11

By Mike Conlon, ForexNews.com on Oct 17, 2011

Over the weekend, G-20 leaders re-iterated their desire that EU leaders pick up the pace and come up with the solution to the Euro debt crisis, essentially giving them a week to finalize the plan. This provided the market with some optimism to start out the day, but that optimism was short-lived as Merkel’s reps sought to lower expectations.

The message was that essentially the “dream” of solving the crisis in the next week was not likely, essentially dousing risk appetite lower. While European leaders believe that they have identified 5 areas that need to be addressed, as always, the devil is in the details.

Forex Market Outlook 10/14/11

By Mike Conlon, ForexNews.com on Oct 14, 2011

It looks as though the European rescue plan is starting to take shape as a meeting of G-20 leaders is likely to produce a framework for the resolution. It is then likely that whatever emerges will be discussed at a meeting next week of European leaders and if that is agreed to, then we could have the final resolution by early November as promised by Merkel and Sarkozy.

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