Was the "We are Mer-Kozy Once Again" statement disappointment?

I showed you the initial reaction in the Euro to what is being billed as broad agreement between Angela Merkel of Germany and Sarzoky (truly of Hungarian descent) of France which had seen strained relations over the last few months, but as soon as France's yields started climbing, Sarkozy started to do a number of 180 degree flip-flops to bring himself in line with the only country in Europe that looks like it could stand on its own if everything else caved.

In any case, the announcement was that they were in broad agreement (even if it is to create a German dominated Europe that essentially controls the budgets of its neighbors and I say this half sarcastically, but it seems that what Germany couldn't accomplish with bullets in Europe over the last two world wars, they are accomplishing with bailouts and Euros). However, what was left out of the announcement is what the world wants to hear, THE ECB WLL PRINT AND MONETIZE DEBT, which Germany has at least in the recent past, staunchly opposed with apparently vivid lessons learned from the Weimar Republic.

The other issue that WAS NOT left out, but specifically included was Euro-Bonds. Just for good measure, as we already know where Merkel stands on the issue, Sarkozy was the one who said,

"EURO BONDS ARE `IN NO CASE' A CRISIS SOLUTION"


For me, I almost have a visual of Merkel saying to Sarkozy, "Now tell me again what our position is on Euro Bonds and this time I want to feel it"


It appears that the two issues may have dissappointed the EU as the Euro fails to gain any traction off the initial boost it got.

The initial reaction was a 40 pip move in 3 minutes or so and the follow through has been weak, you can almost say trending down with lower highs and lows in place, of course this is a 1 minute chart, but it will be interesting to see if in fact this was a disappointing issue heading in to Friday's summit, the market should speak between now and then.