EUR/USD now pulling lower.....>

GLOBAL MARKET/OPINION: EUR/USD now pulling lower having initially rallied on the

decision from the German constitutional court.

- As headlines crossed that the German court had partially dismissed the ECB

case, EUR/USD rallied to touch $1.0926, moving in tandem with European equity

markets and Italian BTP futures.

- Much of this price action has, however, reversed as the German court published

it's exceptions with the ECB's PSPP programme, adding that it partially violates

constitutions and isn't backed up in EU treaties.

- Asset markets have since reversed, with EUR/USD now printing close to earlier

lows of $1.0886 as equity markets return to pre-announced levels.

- Takeaway is that there are ways in which the ECB can rectify their PSPP

program within the three month deadline set by the German Constitutional Court,

but this does complicate the matter politically.