The normally hawkish Buba president says that the German economy could see negative growth throughout 2009 while the broader Eurozone economy could contract through the second quarter of 2010. He says Germany has done what is sensible on stimulus but that the US could do more (!).
EUR/USD is consolidating gains as the market looks past the present morass and apparently sees brighter days ahead, at least in terms of stock prices. One factor spurring the bounce are hopes that mark-to-market accounting will be suspended…Rumors to that effect have been swirling all morning. A hearing is scheduled for Thursday on Capitol Hill on that subject. 1.2750 is support now on dips. We trade at 1.2787.
