Merkel’s call for ‘orderly default’ supports EUR shorts

It’s a new blow to the EUR confidence when Merkel calls for an ‘orderly’ default possibility in the Euro-zone and that ‘orderly’ insolvencies of states must be studied. There is nothing orderly about these markets which are moving erratically on ‘fumes alone’. The currency has garnered strength on the fear that the G7 is concerned about the speed of its decline this month. Capital Markets have been preparing for some verbal intervention to support the EUR ‘if the rout continues’. What about multilateral currency intervention? We have not seen that in a decade. With the heavily weighted one-sided bet, surely policy makers would get value for their money on actually intervention? Perhaps they... Details