Draghi dragged the euro down

EUR/USD

Mr. Draghi bitterly disappointed the financial world on Thursday. Yes, the key interest rates were lowered by a quarter of a point to 1 percent. But, alas, there’s no “shock and awe” over the troubled countries’ bond purchases. There hasn’t been even a single attempt to play with the laws and find some loophole. ECB is perseveringly sticking to its guns: “We have a treaty and Article 123 prohibits financing of governments. It embodies the best tradition of the Bundesbank. We shouldn’t try to circumvent the spirit of the treaty.” After that statement markets immediately went down and the demand for more…

Rising stakes for the summit: S&P is threatening to cut the ratings of almost all EU countries

EUR/USD

S&P is threatening to lower the ratings of almost all EU countries and many banks of the region in case ratings of the Euro-Zone countries go down. Stakes on this summit are very high. But now there are some doubts about its successful outcome. Newspapers with reference to some governmental sources say that Germany will oppose an early launching of the additional bailout funds that we spoke about yesterday. Germany assigns primary importance to the fiscal discipline and agrees to come to the rescue only if it is observed. Again and again German politicians make the same mistake: trying to gain more…