Euro surged to its highest level in 3-week high against the U.S. dollar on Friday after German Chancellor Angela Merkel and French President François Hollande in a joint statement affirmed their readiness to do anything to save the Euro zone.
“They again expressed support for the settlement of several issues the Euro, but investors are still waiting for the ECB and the government step in the short term,” said Joseph Trevisani, chief market analyst at the Worldwide Markets in Woodcliff Lake, New Jersey.
Comments German Finance Minister Wolfgang Schaeuble supporting Draghi’s commitment to keep the Euro by taking all necessary measures also helped promote the recovery of the single currency.
Some analysts argue that if the promise Draghi has been a strong signal that the ECB will act to dampen the surge in Spanish and Italian bond yields. ECB is scheduled to hold a policy meeting next Thursday to decide on interest rates and discuss the policy measures next Euro.
While the Spanish Deputy Prime Minister on Friday again try to calm the markets by saying that the massive international bailout is not the right option for the country matador, and it will not happen.