EUR/USD is easing after comments from the ECB chief economist to the German parliament, carried by Reuters.

  • German banks are under capitalized
  • Germany should make concessions regarding Basel III
  • US is betting that German banking system won’t be able to stay in current form after Basel III
  • Fears slight inflation trend in US from Obama’s stimulus program
  • Ratings agencies some times behave irresponsibly
  • Wonders whether IMF has an exit strategy from economic support measures