Forex News – Euro jumps after Merkel-Sarkozy agree on EU treaty revisions

Important: This page is part of archived content and may be outdated.

The euro surged to a session high against the U.S. dollar after rising 0.3 percent within minutes of reports from traders saying that German Chancellor Angela Merkel and French President Nicolas Sarkozy have agreed on revisions to a European Union treaty corresponding to budget deficits.

Divisions between Germany and France on certain key issues have undermined confidence in the euro zone and to a certain extent have exacerbated the debt crisis.

The euro jumped to 1.3485 from 1.3443, up 0.5 percent on the day.

European shares briefly extended gains and bund futures fell on Monday after German chancellor Angela Merkel and French president Nicolas Sarkozy said they had completed an agreement on a plan to help resolve the euro zone debt crisis.

At 1443 GMT, the FTSEurofirst 300 index of top European shares was up 1 percent at 995.34 points, but had gone as much as 1.2 percent higher. The STOXX Europe 600 Banking Index was up 3.1 percent.

The Dow Jones 500 and Nasdaq Composite were up between 1 percent and 1.3 percent in early trading.

Meanwhile, German Bund futures fell to a session low of 134.54 down 97 ticks on the day. It last stood down 75 ticks on the day at 134.76.