Breaking Forex News – Euro jumps after Germany votes to strenghthen EFSF

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The euro jumped against the dollar after the announcement that the German parliament voted by a majority to pass a motion that will strengthen the euro zone rescue fund, known as the European Financial Stability Facility (EFSF) via leveraging.

The vote provides Chancellor Angela Merkel with the mandate she needs to negotiate at the much anticipated EU summit tonight in Brussels.

The motion states that the European Central Bank (ECB) will no longer need to buy bonds on the secondary markets, and that the rescue fund cannot be financed through the ECB.

EURUSD jumped 43 pips within a minute of the announcement at 13:15GMT, rising to 1.3974 from 1.3930.