All Talk, No Action In Europe
Euro zone finance ministers are meeting on the debt crisis - again. But this strategist isn't expecting much.
Today in Brussels, euro zone finance ministers are meeting yet again to try and agree on a bailout plan for Greece. But not much will happen, says Alan Ruskin, global head of G10 foreign exchange strategy at Deutsche Bank.
"I would expect that over time, we'll evolve in the direction consistent with the European Central Bank's thinking" about a bailout, Ruskin told me. But today, Ruskin says, the ministers are just "edging in that direction." The ECB's president, Jean-Claude Trichet, has explicitly opposed any bailout that would be classed as a defaultor trigger a "credit event," while German officials have called for bondholders to share the burden of a bailout.
What does that mean for the euro?
Many experts believe an aid package will have to be just about nailed down by June 20, when finance ministers meet again in Luxembourg.
There will be "a lot of noise, a lot of headline risk," Ruskin says. "I don't think the euro can run too far in the midst of this." He recommends selling the single currency over $1.45.
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