EUR/CHF has broken back below the 1.5200 despite earlier jawboning today by SNB vice president Jordan, EUR/GBP trades just above session lows of 0.8537, now at 0.8543, and EUR/JPY is just above it’s lows at 134.40 now.
Trichet broke little news at his monthly press conference but the discussion reminded traders just how aggressive the ECB has been in flooding the European markets with liquidity. Much of that liquidity has yet to flow into the real economy and most sits in the ECB, just as the QE in the US has yet to impact the real economy.
US equities remain underwater but the losses pall in comparison to the losses in Europe. The DAX was down 3.8% and the CAC-40 was down 3.1%.
IN EUR/USD, offers are seen at 1.4060/65 near-term.
