The decision of the authorities in Germany to limit speculation in certain financial instruments by banning the trade of short “with them cause strong movements in financial and currency markets in recent hours. As a result, the euro sank again, gold and oil retreated positions. By decision of regulatory authorities in Germany were banned short sales of shares of the ten leading banks in the country, government bonds and related swaps for protection against non-performing debt for the period ending March 31st, 2011. This decision was taken to the disapproval of the markets because it is alone and does not comply with Germany’s partners in the European Union. According to some estimates, such a unilateral act could have a more negative effect than is likely to calm the situation. Some experts indicate that action as a sign of desperation and a signal of major weakness in Germany, transmits Reuters. The explanation of the regulators in a country that action be taken “because of unusual volatility in the price of government bonds in the euro area. After Germany, similar measures can be introduced, and Austria, which, however, said it would seek discussions at EU level. “We intend to put this issue on the agenda of the meeting of finance ministers on Friday, the goal is a ban on short selling in the EU”, said yesterday the representative of the Austrian Finance Ministry for FT.
For the moment, losing most of what is happening is the single European currency, which collapsed to a new four-bed 1,22 EUR / USD late yesterday. This is explained by the shift of speculators betting prohibited from trading assets to short bets against the euro as a whole. “People who are afraid to bet against the assets of the EU because of concerns about regulatory intervention would be carried bets against the euro because it has no restrictions on trading of short,” said Darius Kovalchuk on CNBC by SJS Markets in Hong Kong. This morning the euro weakened significantly, falling to 1,2171 EUR / USD in the Asian trading session. Against the yen retreat was reported to 111,72 EUR / JPY. As a result of what happens to oil continues losing ground and having reached yesterday was the lowest since September last year until now, today with more quotes sink 0.8 percent to 68.86 dollars a barrel. Gold did lose more than 1.1 per cent in trading yesterday and today traded at 1,214 dollars an ounce.