Saving The Euro - Part 17

Rob's 17th guest post on Saving the Euro.

Last Point Answered

There has obviously been a lot of behind the scenes discussion between non-Euro governments resulting in the announcement today that their Central Banks will facilitate access to non-Euro funding.

The Federal Reserve in the USA has also made it a lot cheaper for other Central banks to "buy" US$.

Result:

Stock markets have jumped between 3 and 4% - FTSE back over 5,500.

On the FX markets the US$ has weakened in line with the announcement and Euro/$ has risen to 1.35, and GBP/$ has jumped to 1.5750.

Is this the start of a global co-ordinated plan to rescue Europe, and by extension the global economy?

As I said below, I couldn't understand the "markets" reaction to recent events, but this would explain a lot – the markets are pretty incestuous and such negotiations between governments don't stay secret for long.

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The author, Rob (not his real name), works in one of UK's largest charities.