Eurocurrency gives back recent gains against dollar today as markets are concerned on the uncertain outcome from EU finance ministers meeting today. IMF Managing Director Strauss-Kahn will join the meeting and discuss an IMF report about the situation of the European debt markets and would call on EU finance ministers to boost the facility and urge ECB to step up its bond purchases. However opinions on the proposal are mixed among finance ministers. Belgian finance minister Renders said that the fund might be expanded if ministers decide to introduce a larger permanent facility. Meanwhile, ECB Trichet urged the governments to consider such a move last week. However, Germany and France are clearly objecting such an idea. In addition, there are speculations that Portugal would be in focus too as other Eurozone counterparts exert pressures on Portugal to apply for a bailout.
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