Germany Trying to Have its Cake and Eat it too?

Its funny how quickly things change when we talk about money.  For months, mention of fiscal integration or Euro Bonds was quickly met with a “yeah right, we aren’t guaranteeing anyone’s loans” from Germany.  Their stance made sense as they had already committed billions towards EU bailouts and funding and the last thing they wanted to do was guarantee debt for their fellow spend happy EU brothers.  Just the thought of backing it would probably end German Chancellor Angela Merkel’s leadership, along with many in her ruling party.

German PPI Could Put Pressure on the EURUSD

German month over month PPI was just released at 0.4% versus 0.5% expectations.  The drop in PPI follows previous reports last month of the country experiencing negative growth.  As such, after an imppresive late afternoon rally yesterday to a high of 1.3265, the EURUSD could be vulnerable to selling pressure if it breaks below its 1.3220 support (see chart)