With ECB rates down to 2%, Bank of Italy governor Draghi says that there is not much room to go lower. He also says fiscal stimulus should be large and lasting and are key to economic recovery. Draghi is also the head of the Financial Stability Forum.
Stocks have turned decidedly lower again, with the S&P down 1% and the Dow off 1.5%. More layoffs and fears of an awful employment report from the US on Friday are helping pressure the markets as risk aversion rears its ugly hear. EUR/USD has pulled back to 1.2827. Support is at 1.2807.
