internationallove

"Analysts’ comments on EUR/USD "(2012-03-22) Analysts’ comments on EUR/USD Rabobank: “The calming of markets in the last few months has come from policy measures, and the ability of policy makers to continue delivering supportive packages in large part stems from the strength of Germany. In the near-term the euro may be supported.” Euro-negative UBS: “We’re seeing a tussle between investors who think this is a risk-on environment and therefore euro-dollar should go higher, and those that recognize balance sheet expansion by the European Central Bank will likely weaken the euro. A growing number of investors are looking at “the relative policy stance” of the ECB and the Fed.” Pimco: the specialists are bullish on the greenback and expect EUR/USD to fall below $1.15 this year. On the odds of additional QE in the US RBS: if US economy evolves as outlined in the median FOMC forecast released in January, the odds of QE3 this year are about 0.25%. However, given the risks around that forecast, the (unconditional) probability of QE3 is much higher, around 40%. Comment here http://www.fbs.com/analytics/2012-03-22/17002-analysts-comments-eurusd

"Yen strengthened: analysts’ comments "(2012-03-22) Yen strengthened: analysts’ comments On Thursday yen went up against other major currencies on the backdrop of the unexpected positive data on Japan’s export. The trade balance in February came to a surplus of 32.9 billion yen ($393 million) regardless the expected deficit of 120 billion yen. Exports dropped only by 2.7% from the previous year instead of the 6.5% forecasted decline. Forecast Pte: The data suggest that Japan’s economy is doing better. From a fundamental perspective, this is likely to be positive for the yen. J.P. Morgan analysts refer the yen’s strengthening to yesterday’s “bearish reversal” at USD/JPY chart where the dollar failed to break through the 84.10 resistance area. A breach below 82.85/65 support zone will prove the retracement. Brown Brothers Harriman: Momentum and other technical indicators warn the market is stretched, after the dollar has rallied more than 10% against the yen since the end of January. A break of the 83.00 area is needed to confirm a top is in place. Danske Bank analysts advised earlier to open long positions at 83.65 yen, targeting at 84.78 and with a stop-order at 83.01. USD/JPY is now trading at 83.14. Comment here http://www.fbs.com/analytics/2012-03-22/17001-yen-strengthened-analysts-comments

"Aussie’s down after China’s PMI; technical levels "(2012-03-22) Aussie’s down after China’s PMI; technical levels Australian dollar is once again affected by Chinese data. HSBC flash PMI signaled that manufacturing may shrink in China for a fifth month in a row. The economists will now expect Chinese authorities to ease monetary policy, though the risk of building inflation will surely complicate such decision. Aussie is very dependent on economic situation in China, its key export partner. AUD/USD slid this week from Monday’s maximum of $1.0636 to the levels below $1.0400. Australian currency depreciated by 4% in March due to the general strengthening of US dollar. Today the pair tested the levels under 200-day MA at $1.0400 and touched 100-day MA at $1.0372. These together with the base of the daily Ichimoku Cloud at $1.0353 are the key support levels to hold Aussie from further slump in the near term. As for the longer term, analysts at Pimco expect AUD/USD to slide to 0.0900 by the year-end. Comment here http://www.fbs.com/analytics/2012-03-22/16998-aussies-down-after-chinas-pmi-technical-levels

"Nova Scotia: loonie may rise versus Aussie "(2012-03-22) Nova Scotia: loonie may rise versus Aussie Technical analysts at Bank of Nova Scotia (BNS) expect the Canadian currency to advance against the Australian. Specialists are bearish on the currency pair because of the Momentum indicator and as MACD dropped further below the center line. The decline in AUS/CAD is provoked by the global economic trends. Data from China, the Australian biggest trade partner, show the cutback in manufacturing. Canada, quite the opposite, is benefiting from the rebounding U.S. economy. According to analysts, if AUS/CAD consolidates below C$1.0337, the chances for further drop to C$1.0260 will increase. Today the currency pair is trading in the C$1.0323 area. Comment here http://www.fbs.com/analytics/2012-03-22/16996-nova-scotia-loonie-may-rise-versus-aussie

"MIG analysts: EUR/USD prospects "(2012-03-21) MIG analysts: EUR/USD prospects According to MIG analysts, the EUR/USD growth is targeted at $1.3290 (March 8 maximum). If the currency pair surpasses this level, it will get the chances to break through the $1.3436/60 area and to target at $1.3628 (200-day MA). If the pair closes below $1.3140 and then $1.3000, a risk of further decline to $1.2630 will arise. Comment here http://www.fbs.com/analytics/2012-03-21/16987-mig-analysts-eurusd-prospects

"Standard Chartered: the greenback and risk appetite "(2012-03-21) Standard Chartered: the greenback and risk appetite Analysts at Standard Chartered underline that many experts that the greenback has lately been switched from being a safe-haven or, in other words, counter-cyclical currency to a more pro-cyclical, risk-positive one. The specialists don’t share this point of view. To their mind, that while US dollar has periodically traded in line with higher-beta assets, as opposed to against them, this has not been the case on a trend basis. According to Standard Chartered, what we see now is not a permanent shift in the relationship between the greenback and risk appetite. The recent dynamics of American currency reflects the cyclical divergence between the US economy on the one hand and those of Europe and Asia on the other, along with diverging portfolio flows. Comment here http://www.fbs.com/analytics/2012-03-21/16983-standard-chartered-greenback-and-risk-appetite

"Citi: USD/JPY ahead of Japan’s fiscal year "(2012-03-21) Citi: USD/JPY ahead of Japan’s fiscal year Usually Japanese companies tend to buy the national currency in March ahead of Japan's fiscal year-end. As a result, yen gets support from elevated demand. This year, however, the traditional pattern seems derailed, says Citi. “One traditional yen specific factor is the year-end yen buying by Japanese corporates and there has been some of that of late. This time around, however, we have also seen some USD/JPY buying from Japanese energy importers. The latter could offset any USD/JPY selling in coming days." Comment here http://www.fbs.com/a...ans-fiscal-year

"Commerzbank: euro’s advance may prove short-lived "(2012-03-21) Commerzbank: euro’s advance may prove short-lived The single currency was trading on the upside versus the greenback today as Greece's lawmakers approved the country's second 130 billion-euro bailout deal. However, the majority of analysts regard euro’s advance as short-lives claiming that EUR/USD will likely be curbed due to rising U.S. Treasury yields which encourage dollar’s growth. In addition, analysts at Commerzbank think that the approval “was not a big step but has been perceived as positive by the market”. In their view, “the broader trend is still a stronger dollar and on that point we see the economy picking up in the U.S.” Brown Brothers Harriman: “If U.S. data remains solid U.S. yields may continue to track higher, while Europe faces some risks from the Italian labor reform talks and continued poor economic news from Spain”. Many experts say that the Parliament vote was nothing but a formality. EUR/USD is down from an almost 2-week high of $1.3283 to the levels around $1.3240. Resistance for the pair is situated in the $1.3300 area (61.8% retracement of the decline from the end of February to the middle of March). Keep an eye on the Fed’s Chairman Ben Bernanke’s testimony to Congress later today and a bunch of European (especially German) PMIs tomorrow. In the longer term analysts at UBS believe that the ECB would need to keep pumping liquidity into the euro zone’s money markets, so investors will be tempted to seek other foreign assets rather than the euro. According to the bank, EUR/USD will fall to $1.25 in 3 months and to $1.15 by the year-end. Comment here http://www.fbs.com/analytics/2012-03-21/16981-commerzbank-euros-advance-may-prove-short-lived

"UK: public borrowing surges, Posen and Miles want more QE "(2012-03-21 UK: public borrowing surges, Posen and Miles want more QE British pound dropped by 70 pips on the news that UK public sector net borrowing rose in February to the maximal level since 1994 of 12.9 billion pounds versus the forecast level of 5.0 billion pounds. In addition, the minutes of the Bank of England’s MPC March 8 meeting showed that 2 members of the Committee (David Miles and Adam Posen) voted to increase Asset Purchase Program by 25 billion pounds in order to avoid damage for the supply capacity of the economy. Posen and Miles said that the central bank’s monetary policy should be loosened further to stimulate demand quickly, “but the stimulus could then be withdrawn were it to become clear that there was a significant risk of inflation rising above target in the medium term.” The agreement to keep the benchmark interest rate unchanged at 0.5% was unanimous. According to the statement, “overall, the Committee judged that the recent data had evolved in line with its expectations and that there had been little change to the balance of risks to UK activity and inflation.” At the same time, MPC acknowledged the sharp increase in crude oil prices: “If oil prices were to rise to a level significantly higher than the Committee currently assumed, then that would tend to slow the global and domestic recovery, reduce supply growth, and put upward pressure on domestic costs and prices.” After the market digested the data GBP/USD found support in the1.5856 area and managed to rise to $1.5870. If the pair manages to rise above March 19 maximum in the $1.1915 zone, it will get chance to strengthen to $1.5966 (Mar. 2 maximum) and $1.5975 (Mar.1 maximum). Support levels for sterling are situated at $1.5831 (Mar. 20 minimum), $1.5823 (Mar. 19 minimum), $1.5798 (21-day MA) and $1.5771 (10-day MA). Comment here http://www.fbs.com/analytics/2012-03-21/16978-uk-public-borrowing-surges-posen-and-miles-want-more-qe

"RBS: comments on major currencies "(2012-03-21) RBS: comments on major currencies - EUR/USD: the pair moved higher in recent days, initially spurred on by mixed US economic data at the end of last week and potentially due to some position readjusting. However, further downside for the pair is likely given increasing rate spreads in favor of the US and recent liquidity expansion in the euro area relative to the US. - JPY: yen is acting more like a funding currency for “risk-on” trades. Strong global equities and narrowing credit spreads in recent weeks appear to be boosting JPY crosses. We still see 85 as a bridge too far at this stage, but base may now be 82. - CAD: Canadian data was softer, with a drop in foreign interest for Canadian assets and disappointing manufacturing and wholesale sales data. But we still think CAD remains attractive versus the USD and EUR, especially if US data keeps improving. - NZD: strong rural growing conditions and improving property market are tending to lift confidence. We see scope for NZD to out-perform AUD near term. - AUD: recent Australian activity indicators below expectations. Political and budget uncertainty increasing as contentious mining and carbon taxes are introduced midyear. Global risk appetite up, but local factors should cap AUD. - This is mixed week - higher US rates pushed the USD higher over the week versus JPY, AUD, NZD and CAD while short-covering has pushed up EUR, CHF and GBP. Comment here http://www.fbs.com/analytics/2012-03-21/16975-rbs-comments-major-currencies

"RBS: how to trade USD/CHF "(2012-03-21) RBS: how to trade USD/CHF According to Royal Bank of Scotland, the U.S. dollar may strengthen to Swiss franc because of the U.S. economic improvement and the interest rates increase. Strategists at RBS are bullish on American currency. They advise to wait for the lower entry levels and recommend buying the greenback when USD/CHF closes below the 200-day MA for two consecutive days (currently at 0.8824). The target level lies at 0.9950. According to an internal model, fair value for the pair is above the 0.9400 level. Rebounding U.S. economy embraces hope to investors. Inflation is close to a 2% target level and a further quantitative easing is unlikely. The number of Americans claiming new jobless benefits fell to a four-year low (351K in Feb. versus 365K in Jan.). Philly Fed Manufacturing Index picked up this month (12.5 in Feb. versus 10.2 in Jan.). Number of building permits increased to 0.72M in Feb. from 0.68M in Jan. The overnight index swap market is indicating an interest-rate increase from the Federal Reserve in the fourth quarter of 2013, compared with a July 2014 forecast in February. The yield spread from purchasing 10-year Treasuries versus similar-maturity Swiss bonds rose to 142 basis points from 127 basis points at the beginning of the month. Analysts at RBS expect the greenback to trade in the 0.9500 area by the middle of the year before declining to 0.9000 by December. Comment here http://www.fbs.com/analytics/2012-03-21/16974-rbs-how-trade-usdchf

"Kiwi may stay unaffected by China in longer term"(2012-03-21) Kiwi may stay unaffected by China in longer term Concerns about China will send kiwi down? Some analysts don’t think so. Commodity currencies, such as New Zealand’s and Australian dollars, dropped yesterday after BHP Billiton, the world’s largest miner, warned that iron ore demand from China was “flattening”. The producer expects demand growth to slide back into single-digit figures. Despite the all the recent worries about the potential slowdown of Chinese economic growth – the second largest economy in the world is the biggest importer of commodities, mainly form Australian and New Zealand – some experts are bullish on NZD in the longer term. For example, analysts at financial adviser Macquarie Private Wealth believe that NZD/USD will keep appreciating during the next 3 years. Their main argument is that New Zealand and Australia will attract investors by safe political climate. They do have a point here as in the current condition political safety actually means much. “If you look at the last 6 months... the New Zealand dollar has risen 8% against the US dollar. Even if the Reserve Bank Governor were to drop interest rates by a full percentage point, it would probably not change the track of our dollar,” claims Macquarie. The specialists think that the interest gap between the New Zealand dollar and Australian dollar will close over time: “Our official cash rate is 2.5%, and we don't see any downside to that - the next move from New Zealand being up...the likely next moves in Australia is down”. Economic data New Zealand’s current account deficit narrowed from NZD4.75 billions in the third quarter of 2011 to NZD2.76B in the final 3 month of last year. Watch the nation’s GDP release at 9:45 p.m. GMT. The consensus forecast is 0.6% growth in Q4 slightly down from 0.8% in the previous quarter. The expected slowdown is explained by the decline in manufacturing, compensated by strong farming output and better retail trade and construction. Comment here http://www.fbs.com/analytics/2012-03-21/16972-kiwi-may-stay-unaffected-china-longer-term

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"UK economy: there’s some improvement "(2012-03-20) UK economy: there’s some improvement On Wednesday, March 2, Chancellor of the Exchequer George Osborne is expected to present an annual budget and to report there is no threat of recession hanging over Great Britain. Dow Jones analysts believe that Osborne may make some amendments to tax legislation, but basically leave the budget neutral. Specialists say the budget deficit has improved. Public-sector net borrowing will be about 125 billion pounds ($200 billion) in current fiscal year that ends this month rather than the 127 billion pounds forecast by the OBR in November, according to a survey of 27 analysts compiled by the Treasury last month. Morgan Stanley: The deficit is likely to improve next fiscal year to about 120 billion pounds. According to analysts, the U.K. economy definitely returned to growth in the first quarter after a 0.2 percent contraction in the last three months of 2011. Manufacturing and services continued to expand in February (PMI is above 50), while consumer confidence index is forecasted to grow (held at the highest since June). Office for Budget Responsibility is likely to reflect weak improvement in the labor market with jobless claims seen reaching 1.75 million people this year. Data last week showed Claimant Count Change in February turned to be bigger than expected adding 7.2K versus forecasted 6.5K. The data, released today, revealed a decline of CPI to 3.4% in February from 3.6% in January. Inflation, therefore, edged down in February to the lowest level in over a year keeping hopes that easing inflation will allow consumers to increase spending this year and to boost the economy. The main projection for CPI is to fall below the 2% target level by the end of the year. RBS: The U.K. economy is looking marginally better: the euro area crisis has receded and the surveys seem to have got a bit better. Britain could easily get 0.3-0.4% in the first quarter despite some uncertainty around the construction data. Overall in 2011 the UK economy grew just 0.9 percent. The next set of GDP figures for Britain due out in April. Comment here http://www.fbs.com/analytics/2012-03-20/16969-uk-economy-theres-some-improvement

"JPMorgan Chase: the risk of hard landing in China"(2012-03-20) JPMorgan Chase: the risk of hard landing in China While many economists worry about China’s economic slowdown, analysts at JPMorgan Chase think that the nation has already started to experience “hard landing”: “Car sales are down, cement production is down, steel production is down, and construction stocks are down. It’s not a debate anymore, it’s a fact.” Earlier in March China’s Premier Wen Jiabao announced that China’s 2012 economic growth target is set at 7.5%, while during the previous 7 years it was always at 8%. China’s factory output in the first two months of the year rose the least since 2009, retail sales increased less than expected and inflation eased to the slowest pace in 20 months, while foreign direct investment in China declined in February. JPMorgan Chase warns investors about the situation at China’s property market. As Wen claimed that home prices are still “far from a reasonable level,” there are concerns that Chinese government will maintain restrictions on the property market for an extended period that will have negative effect on economic growth. “What you can look forward to is to see a pickup in property demand that will clear up the inventory; that doesn’t appear likely. We don’t see any evidence of a policy move that will cause the economy to reaccelerate,” say the specialists. Gary Shilling (A. Gary Shilling & Co.) also thinks that China’s heading towards hard landing and defines this term as a growth rate below 6%. Comment here http://www.fbs.com/analytics/2012-03-20/16964-jpmorgan-chase-risk-hard-landing-china

"RBC: spring NFP figures may bring negative surprises"(2012-03-20)(2012-03-20) RBC: spring NFP figures may bring negative surprises Analysts at RBC claim that while US economic fundamentals (particularly, the labor market ones) have likely improved so far, some of the recent favorable indicators’ glow may be attributed to the better weather – the winter of 2011-2012 in the US was the forth warmest since 1920. The specialists conducted an interesting research: they analyzed Non-Farm Payrolls data for the last 15 years and came to conclusion that data surprises tend to be positive during warm winters and the actual figures are much higher than on average (this winter NFP beat expectations 3 times increasing by 250K per month on average). Such trend may be explained by rising construction activity and retail spending during mild winters. In spring after such warm winter payroll surprises, on the other hand, tend to be negative and also higher than average. This happens because market’s participants revise up their expectations after winter’s positive figures, so that the next time it’s much more difficult for the actual data to surpass the elevated estimates. What are the implications for trading? According to RBC, after such warm winter of 2011-2012, spring data release may surprise the markets to the downside. How will US dollar react to such data releases? The negative correlation of the greenback and risk sentiment has seemed to wear down (earlier better US data caused American currency decline as risk appetite improved and investors were reducing dollar positions because the greenback was perceived as a safe haven) and for now dollar is acting as a growth-linked currency. So, if RBC’s projections get confirmed, US currency will likely find itself under bearish pressure. Comment here http://www.fbs.com/analytics/2012-03-20/16...ative-surprises

"RBC, Commerzbank: resistance for EUR/JPY " (2012-03-20) RBC, Commerzbank: resistance for EUR/JPY Technical analysts at RBC Capital Markets note that “bullish engulfing” pattern seen at EUR/JPY daily chart (February 15, 16) made the pair break through the key resistance at 107.45 yen. The specialists underline that euro finds itself inside a “declining wedge” seen on the monthly chart. If the single currency closes March above 107.45 yen, it will be able to test resistance levels at 111.67, 114.05 and 120.95 yen. The bank expects bulls to become more active at 107.45 and 102.20 opening new longs on the dips. Analysts at Commerzbank also think that EUR/JPY may strengthen to 113.29 yen if it overcomes resistance at 111.57. Comment here http://www.fbs.com/a...sistance-eurjpy

BBH: bullish on AUD/USD In the middle of the last week the Australian dollar held support near $1.0420, but then closed the week rebounding to the $1.0600 level. BBH analysts remain bullish on the Aussie because the possible rate lowering from the RBA in May is already priced in. Specialists believe the Aussie to pass the $1.0640 resistance line, which corresponds to the 20-day moving average, and to test the $1.07 area before the end of the week. In a longer outlook AUD/USD may reach the $1.08-$1.0850 level. comment here http://www.fbs.com/analytics/2012-03-20/16955-bbh-bullish-audusd

NZD/JPY: Elliott Wave forecast According to Forecast Pte, NZD/JPY may reach 69.63, its highest level in almost 2 1/2 years. Specialists believe the kiwi is rising in line with the Elliott Wave Theory and now is on its 5th wave. The Elliott Wave Principle, proposed by accountant Ralph Elliott in the 1930’s, is a form of technical analysis based on the theory that investor psychology moves between optimism and pessimism in natural sequences. It seeks to predict prices by dividing trends into 8 waves. First wave: Nov. 24 - Dec. 2 (rally from 57.03 to 61.12); Second wave: Dec. 3-15 (decline from 61.12 to 58.26); Third wave: Dec. 15 - Feb. 27 (rebound from 58.26 to 68.35); Fourth wave: Feb. 28 - March 6 (drop from 68.35 to 65.31); Fifth wave: began on March 7 (increase from 65.31). Analysts at Forecast Pte are convinced there is a strong resistance line at 69.63. NZD has already approached this level in Oct. 2009 and in May 2010. Today New Zealand’s dollar is trading in the 68.67 area. Yesterday it rose to 69.14, the highest since May 2010. Comment here http://www.fbs.com/analytics/2012-03-20/16952-nzdjpy-elliott-wave-forecast

BMO Capital: trading GBP/USD Currency strategists at BMO Capital are bearish on British pound versus the greenback. The specialists think that MPC March meeting minutes which are released tomorrow will show weak economic growth. In addition, BMO cites the recent Financial Times article proposing to conduct long-term refinancing operation in the UK. At the same time, US Federal Reserve may allow itself to refrain from easing taking into account its improved economic prospects. BMO wants to “take advantage of the selloff in the dollar to sell the British pound on a rally”. The analysts think one should wait for a lift in the pound noting that “the market got itself way too long U.S. dollar and everybody pulled back at the end of the week.” According to the bank, it’s necessary to sell GBP/USD at $1.5925 targeting $1.5650 and stopping at $1.6025. Comment here http://www.fbs.com/analytics/2012-03-20/16951-bmo-capital-trading-gbpusd

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"CFTC: yen net shorts at maximum since 2007 "(2012-03-19) According to Commodity Futures Trading Commission, net shorts positions on Japanese yen reached the maximal level since May 2007 of 42,380 contracts. Sterling short positions also rose to the highest level since the beginning of December of 41,848 contracts. The value of net long position on US dollar declined from $19.27 billion (March 6) to $19.0 billion (March 13). JAPANESE YEN (Contracts of 12,500,000 yen) 6,393,314,023.65 3/13/12 week 3/06/12 week Long 22,249 33,281 Short 64,629 52,639 Net -42,380 -19,358 EURO (Contracts of 125,000 euros) 16,243,919,400.00 3/13/12 week 3/06/12 week Long 40,325 39,943 Short 139,661 156,416 Net -99,336 -116,473 POUND STERLING (Contracts of 62,500 pounds sterling) 4,108,165,850.00 3/13/12 week 3/06/12 week Long 21,924 22,308 Short 63,772 59,407 Net -41,848 -37,099 SWISS FRANC (Contracts of 125,000 Swiss francs) 2,003,845,737.19 3/13/12 week 3/06/12 week Long 9,351 8,114 Short 24,149 27,592 Net -14,798 -19,478 Data from CFTC, Reuters It’s necessary to note that the figures cited above are always a week old at the time of their release. Never the less, CFTC data gives a good oversight into how the market is positioned and if/how these positions are being unwound. Comment here http://www.fbs.com/analytics/2012-03-19/16947-cftc-yen-net-shorts-maximum-2007

"Investors may sell yen on its advance"(2012-03-19) Japanese yen rose versus euro, the greenback and growth-linked currencies. Never the less, the majority of experts see yen’s recovery as a chance to open new shorts on yen. Analysts at CIBC World Markets claim that the market has gone too short on yen, so now we are seeing a correction in USD/JPY and EUR/JPY. The specialists expect the greenback to rise to 85-85.50 yen and think that euro will consolidate after reaching 5-month maximum above 110 yen. Strategists at Credit Suisse think that US dollar’s ability to resume rebound against Japanese currency will depend on further actions of the Bank of Japan. The BOJ may continue monetary stimulus after it surprised the markets with unexpected easing last month, but didn’t expand its asset purchase program in March. Investors will likely keep using yen as a funding currency in carry trades (borrowing in low-yielding yen in order to buy higher-yielding assets). US dollar has become less attractive for this purpose because of rising Treasury yields. However, Japanese companies tend to buy yen in March ahead of the end of the nation’s fiscal year on March 31 – this may encourage demand for yen. One should also watch New York Fed President William Dudley’s comments later today as he’s known as a dove and may emphasize that the chance of further stimulus could not be ruled out unless the U.S. unemployment rate declines more. Comment here http://www.fbs.com/analytics/2012-03-19/16944-investors-may-sell-yen-its-advance

"Euro zone’s leaders may combine EFSF and ESM "(2012-03-19) European officials consider combining two bailout funds to increase the region’s financial firewall from 500 to nearly 700 bln euros, said German Chancellor Angela Merkel on March 16. Finance ministers and CB governors will discuss the capacity augmentation of the permanent (European Financial Stability Facility, EFSF) and temporary (European Stability Mechanism, ESM) funds on a March 30-31 meeting in Copenhagen. By the existing rules the joint lending volumes of the 500 bln-euro EFSF and the 400 bln-euro ESM cannot exceed 500 bln euros. However, investors insist on the expansion of the fund in order to make sure that the region has enough facilities to cope with the debt crisis, but Germany opposes such outcome. According to one of the euro zone’s officials, the policymakers discuss several variants, one of which is to consider that Greek bailout (192 bln euros) was financed by EFSF, while the ESM will start with new 500 bln. In this case the overall crisis fund will rise to 692 bln euros. The final decision on the issue, however, isn’t made yet. Comment here http://www.fbs.com/analytics/2012-03-19/16942-euro-zones-leaders-may-combine-efsf-and-esm