Tonight could be interesting…
First of all, we’ll get details of the Irish bailout deal.
Beyond that, though, according to a Reuters flash, some kind of deal has been reached on a permanent crisis resolution mechanism. This is arguably the bigger deal, since unease about the efficacy of existing crisis resolution mechanisms has been a driver of the current crisis.
Obviously it all comes down to details. The extent to which bondholders may have to take a haircut during this (or a future crisis) will be a key thing to watch.
Bear in mind, we’ve had several Sunday night shock & awe announcements since the crisis began earlier this year, and each time the euro jumps briefly and then fades. And recently the fades have come quicker and faster, as the market wises up to the hollowness of what’s announced.