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To: giddy guru who wrote (3719)	5/9/2010 6:29:55 PM
From: fred woodall	Respond to of 220776

The euro is higher in early Asian trading but currency markets are extremely volatile as market participants await details of a European Union package aimed at halting the spread of Greece's sovereign-debt woes to other euro-zone countries. Analysts say a successful conclusion to a meeting of EU finance ministers currently underway in Brussels is critical to stemming volatility as financial markets across the globe open Monday. The euro began the trading week in Wellington at around US$1.2820, up from US$1.2732 late Friday in New York and has since gyrated in a 100-point range, moving on rumors, headlines citing a European Union source and news the International Monetary Fund approved a EUR30 billion loan for the Greek economic crisis. At 2200 GMT, the European currency was at US$1.2908 and was also higher against the Japanese yen at Y119.10 versus Y116.71 late Friday in New York. EU finance ministers, meeting in Brussels since 1300 GMT, are racing to keep the euro-zone's debt crisis from deepening when financial markets open Monday. An EU diplomat said European Union finance ministers are talking about creating a EUR600 billion fund to ensure stability in the 16-state euro zone. However, the EUR600 billion fund still hasn't been agreed to and its size could change in a final pact, the diplomat said. The euro initially dipped to US$1.2875 on the news and ANZ Bank senior dealer Alex Sinton said there may have been some disappointment. Markets "are thinking the bigger the better size wise," he said. Volatility will continue until there is some clarity and a specific announcement, he said. Bank of New Zealand strategist Mike Jones said the market is on tenterhooks waiting for the package that will be "critical to the fortunes" of the euro, equity markets and risk appetite early in the week. "Market chatter suggests (the package) will involve a new system of government-backed loan guarantees, as well as some form of liquidity support from the European Central Bank, possibly including a quantitative easing program similar to that adopted by the U.S. and the U.K.," he said. Markets are extremely jittery and will remain so until "we see some specific details", Jones said. The Australian and New Zealand currencies are also higher early Monday as risk aversion eases. The Australian dollar was last at US$0.9000, up more than a cent from US$0.8886 in late New York Friday and the New Zealand currency was at US$0.7205 versus US$0.7142 Friday. European Union finance ministers are talking about creating a EUR600 billion fund to ensure stability in the 16-state euro zone, an EU diplomat said Sunday. EU finance ministers, meeting in Brussels since 1300 GMT, are racing to keep the euro-zone's debt crisis from deepening when financial markets open on Monday. The EUR600 billion fund still hasn't been agreed to and its size could change in a final pact, the diplomat said. According to current discussions, EUR440 billion for the fund would come from euro-zone governments and EUR60 billion would come from surplus funds in the EU budget. This part of the fund would resemble the bloc's existing EUR50 billion balance-of-payments facility for countries outside the euro-zone, the diplomat said. The EU ministers want the International Monetary Fund to contribute a further EUR100 billion to this regional stability fund, according to the diplomat.