Mid-Day Report: Risk Aversion Recedes as Call for European Short Selling Ban Gained N

[Forex-Outlook]

Less than a day after Germany imposed the naked short-selling ban, EU Internal Market Commissioner Michel Barnier urged other Eurozone finance ministers to coordinate their efforts at a European level to impose similar rules. Barnier emphasized to need to avoid 'regulatory arbitrage and fragmentation both within the EU and globally." German Chancellor Merkel said the Euro is "at risk" and said the naked short-selling ban will "remain in place until other rules are established on a European level." However, the call is not getting much support so far. Chairman of the Committee of European Securities Regulators Eddy Wymeersch said that a Europe-wide ban on naked short selling is "doubtful". French Finance Minister Christine Lagarde said she doesn't "envision doing it." Risk aversion recedes on the news with European major indices recovering from intraday low. Crude oil is also back above 69 level after dipping to 67.9 earlier today. Meanwhile, EUR/CHF jumped sharply from around 1.4 level to as high as 1.4204 on SNB intervention.

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