Technically we haven’t gotten the official word that Bundesbank chief Axel Weber won’t be in the running to succeed Jean-Claude Trichet as ECB chief, but it’s not too early to start speculating on the machinations behind the move.
A good theory (and one we first saw noted by @makro_trader on twitter) is that it was Trichet’s fellow country-mates that kneecapped him, and prevented him from taking on the big job. Why? The Germans love themselves a weak euro. Sure, they like to talk about hard money or sound money, but the country has benefited tremendously from the ideal export conditions that the existing monetary setup has provided them.
That’s why unemployment remains so low, and exports are so hot.
Oh and by the way… the euro is already rebounding from its initial dive on the news.