EU leadership has been reluctant to even consider the possibility of IMF support for Greece - until today. Germany signaled IMF help may be appropriate after all. The idea is not without merit. The IMF can act somewhat independently of convoluted European politics. In addition, the EU will not be setting a dangerous precedence with a Greek bailout. IMF assistance may or may not be the best solution for Greece. But for the euro, that is not what really matters. What matters for the euro is a decisive plan of action that will put an end to weeks of political bickering.
The euro suffered some its worse one day declines on Thursday but as of this evening, EURUSD found support around 1.36 which coincided with Germany's comments regarding Greece and the IMF. A decisive plan of action, even if it eventually fails, will undoubtedly stoke a euro relief rally and pressure the US dollar.
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