Trichet’s right-hand man, Lukas Papademos is on the tape discussing the costs of the crisis and the need to have a clear exit strategy for the ECB’s extraordinary policy actions. The inflation profile is likely to be U shaped, he says, rising in late 2009. Gradual economic recovery is seen in 2010, he says.
Markets are quite choppy as midday approaches but EUR/USD remains supported on dips into the mid 1.38s. GBP came close to 1.6080 before stalling.
