Norwegian Krone Rises To 8-Year High Versus Euro
Wednesday, 7 September, 2011
SNB franc floor move continues to ripple through currency markets
--Norwegian krone looks set to benefit
--Euro volatile after German Constitutional Court ruling
--Polish, Canadian central bank interest rate decisions due
By Clare Connaghan
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--The Swiss National Bank's decision to set a floor for the euro/franc exchange rate continued Wednesday to send ripples through currency markets, driving the Norwegian krone to an eight-year high against the single currency as market participants sought alternative safe havens to the Swiss franc.
http://online.wsj.com/article/BT-CO-20110907-706450.html
What If Germany Seceded From The EU? 40% Appreciation And A Decimated Export Sector
The mess that has become the sovereign debt crisis in Europe has stirred the pot of secession, as commentators look at the possibility of Greece or any other peripherals leaving the Union. But what would happen if Germany were to leave the EU?
Germany would see its new national currency, let’s call it the neo-Mark, rally strongly, about 40% UBS says, effectively forcing banks to recapitalize, taking a hit on corporate balance sheets, and, most importantly, delivering a strong blow to its all-important export sector, as trade would fall initially by 20%, and then maybe by more.
http://blogs.forbes.com/afontevecchia/?p=6411
KARLSRUHE, Germany, Sept 7 (Reuters) -
Germany's highest court said parliament must have a bigger say in euro zone rescue packages, a landmark ruling that may make it more difficult for Europe to deliver swift aid to crisis-hit member states.
As expected, the German Constitutional Court rejected a series of lawsuits from university professors and a politician aimed at blocking the participation of Europe's biggest economy in bailout packages for Greece and other euro zone countries.
But its ruling on Wednesday said the government must seek the approval of parliament's budget committee before granting aid and spelled out that the ruling should not be misinterpreted as a "blank cheque" for future rescue packages.
"The constitutional complaint has been rejected," said the president of the court, Andreas Vosskuhle, in a ruling closely watched by policymakers and investors because of its impact on the decision-making process in the 17-nation currency bloc.
"This was a very tight decision. But it should not be mistakenly interpreted as a constitutional blank cheque authorising further rescue measures," the red-robed judge told the plaintiffs, government officials and members of parliament in the courtroom in Karlsruhe.
http://www.reuters.com/article/2011/09/07/eurozone-germany-court-idUSL5E7K725P20110907
Reuters Insider analysis of German court decision:
link.reuters.com/qec63s
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