The market fear of an intervention by the ECB against the single currency recent rapid falling could support it with a rebound of the Equities markets after an excessive selling last Thursday which weighed on the greenback across the broad by the end of the week from another side. The single currency has opened the trading this week below 1.255 versus the greenback and it is now trading below 1.25 with market focusing again on debt crisis and its negative impacts in the future which is not realized yet especially after last week decision of capping the naked short selling in the financial sector by germane government and the mixed European situation after it which weighed on the market confidence which was already depressed by Trichet's comments nearly a week ago that the current exacerbating situation is similar to the conditions by the falling of Lehman Brothers and the rapid falling of the European stocks.

After the equities markets selling off had calmed down, the single currency inability to get back above 1.244 sliding below 1.22 after retracing from 1.2235 versus the greenback could bring back the gloomy worries about the debt crisis and the single currencies assets backed securities domination again encouraging the risk aversion.

The markets were in increased worrying about the crisis current conditions and negative impacts in the future after the massive falling of the single currency versus the greenback and the royal bank of Scotland warning during the weekend that the single currency can reach parity with the greenback and Trichet's  reference to similarity of the current exacerbating situation to the conditions by the falling of Lehman Brothers which forced it to open this week below 1.233 which was the formed main bottom of October 2008 amid the credit crisis...

The royal bank of Scotland warning during the weekend that the single currency can reach parity with the greenback could deepen the market devising sentiment towards the single currency and its assets back securities holding. The single currency has opened this week on down gaps across the broad trading below 1.235 versus the greenback.

There was a panic in the market after the massive falling of the single currency versus the greenback last week which extended below 1.24 while it was trading above 1.3 after the announcement about reached agreement with the IMF to provide 750 billion euros in a rescue package plan under the request of the European countries which are facing debt problems opening the door for the ECB to start discussing and buying European bonds by the volume which it sees suitable after the market has been disappointed by Trichet's comments about not discussing this issue in the ECB previous meeting!

The current market sentiment is still dominated by the debt crisis in the Euro zone and its consequences which can effect negatively on the growth outlook in the Euro area which is already struggling. The equities markets could have a breathe with the beginning of this week after a massive selling on growing worries about the European financial system and the European countries ability to cap the credit crisis from spreading out to other countries as The EU Fin Ministers could reach an agreement with the IMF to provide 750 billion euros in a rescue package plan under the request of the European countries which are facing debt problems opening the door for the ECB to start discussing and buying European bonds by the volume which it sees suitable after the market has been disappointed by Trichet's comments about not discussing this issue in the ECB meeting last week!. It is not a functional deficit in the ECB but there should be a joint decision after the financial ministers take their decision.