The peso (fix rate) hit $12.54 on September 5. At the same time, the outgoing and incoming presidents of the European Central Bank called for a common fiscal policy with teeth and rapid action by Europe's leaders on the sovereign debt crisis.
All eyes are on the ruling Germany's high court is expected to issue on Wednesday. If the Court requires that the German Parliament approve the country's participation in any important decision made by the European Financial Stability Fund (EFSF), it could significantly slow the process of implementation. The length of time necessary to implement decisions is already a problem: it's hoped that the decision made in July to allow the ESFF to buy bonds issued by European governments will be approved by the member countries' governments before September is over.
Slower reaction time is a sure fire recipe for making a financial crisis worse.
What happens in Germany can affect the the peso.
All eyes are on the ruling Germany's high court is expected to issue on Wednesday. If the Court requires that the German Parliament approve the country's participation in any important decision made by the European Financial Stability Fund (EFSF), it could significantly slow the process of implementation. The length of time necessary to implement decisions is already a problem: it's hoped that the decision made in July to allow the ESFF to buy bonds issued by European governments will be approved by the member countries' governments before September is over.
Slower reaction time is a sure fire recipe for making a financial crisis worse.
What happens in Germany can affect the the peso.
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