Bundesbank president Weber says that German economic development in coming quarters will not be upwards, a polite way of saying it will be downwards. Credit is not in short supply in Germany despite the credit crisis and German banks are robust, he says. Germany should maintain its long-term goal of a balanced budget, he added.
EUR/USD and EUR/JPY are breaking free of resistance at 1.2900 and 128.45 respectively, despite Weber’s downbeat view on German growth. Dealers hope deep rate cuts will help revive the global economy. Stocks are on their highs with the Dow up 2.5%.
