Key details of coalition agreement reached between the German party leaders

A source involved in the negotiations is out with the key details of the coalition agreement after the German party leaders reached a breakthrough in coalition talks.

Markets are awaiting the official release for the confirmation.

Key Details:

German coalition blueprint envisages no tax rises.

Parties are committed to strengthening Eurozone in close partnership with France.

Parties want to transform ESM bailout mechanism into European monetary fund under parliamentary control.

Parties committed to developing common positions with France on all important questions of European and international politics.

Parties are prepared to boost German contribution to EU budget.

Parties support devoting specific budget funds for economic stabilization, social convergence, and structural reform support in Eurozone

The EUR/USD pair quickly reversed a dip to near 1.2055 region to now break above the 1.21 handle on the above headlines.