The European currency climbed after Germany’s top constitutional court allowed the country to ratify the euro-area bailout fund with certain conditions. The decision of the Federal Constitutional Court in Germany is to reject calls to block the ratification of Europe’s 500 billion euro bailout plan. The court yesterday rejected a last-minute bid to delay a case over the European Stability Mechanism. As expected, the judges attached various conditions to the ESM, saying a total cap on Germany’s liabilities under the ESM must be capped for the measure to conform with the country’s Basic Law, or constitution.
The decision could lead the price of the European currency very fast at the levels around psychological 1.3000. At the moment, the US dollar is losing positions and the currency pair is trading around 1.2900. After the release of the news for the decision Euro was pushed up. On down side, the level to watch is $1.2600, which has been a level of support. German stocks also raised very fast which effect on DAX index. The most tradable index in Germany climbs very fast to 7400 points. On downside support could be projected around 7250, high from Friday 7th of Septemb.