Video Related To: Moody's issues negative outlook on Germany, Netherlands, Luxembourg

fxtimes.com Summary The main stories from overnight included European leaders creating a debt mechanism beyond 2013, Moody's downgraded Ireland's credit rating 5 notches, and the German IFO Business Climate Index jumping to a record high. The EUR/USD was supported overnight, but lost its momentum after hitting the 1.3350 area. 1. European Leaders Create a 2013 Debt Mechanism -- the stated purpose of the EU Summit. But there wasn't any more movement on other immediate measures that can be taken to stem the debt crisis. Yesterday, the ECB did raise more capital from the EU, and seems to be the party that will continue to try and support periphery bond markets with strategic buying of bonds. For now, Germany has said no to adding more funds to the 750 billion euro emergency fund, or using it more flexibly, for instance using it to buy bonds of troubled countries. So, what did we accomplish? The current status quo is now moved past May 2013. That seems to miss the point about the current situation worsening. In Merkel's comments, she said she was impressed by measures taken by Portugal and Spain, and that 2011 will be the year of reforms for many euro-zone countries. Some other choice highlights include - Germany and others will do everything to secure the stability of the Euro, the rescue fund is sufficient, the crisis mechanism is an expression of solidarity, and agreements made yesterday is a step towards a European economic governance and the Europe will grow closer <b>...</b>