Mario Draghi insisted that the governments must first ask for aid and use the bailout mechanisms before the ECB uses its firepower. It seemed that he overestimated Spain, and expected it to move in the week between his bold statements and the rate decision.
It now seems that Spain is willing to make the move. Rumors about a Spanish aid request and a special ECB press conference are doing the rounds.
Update: Spain opens the door for asking for more aid – Rajoy is preparing the public.
Update: Rajoy will hold a press conference at 11:30 GMT.
The ECB could follow by announcing that it will buy bonds. Draghi already opened the door for unsterilized bond buying – US / UK QE, or money printing if you wish.
The price of gold is on the rise after being beaten yesterday.
Spanish PM Rajoy had a chance of making such a move when he met his Italian counterpart Mario Monti. However, he missed the chance and the euro continued falling.
Now the euro is moving steadily higher as these rumors float. Spain has scheduled government meetings on Fridays.
Further reading: Draghi Vows to Act in Markets and Address Seniority – Not Now – EUR/USD Slides
