Trichet takes to the microphone once again this afternoon but adds little to the debate. He says inflation expectations are firmly anchored at the level of price stability; that it is reasonable to assume the economy will rebound in 20010 after a tough 2009. Strong reactions from governments and central banks as well as lower commodities prices should help spark next year’s recovery. He cautions governments to maintain fiscal disciplne in the medium to long-term.
EUR/USD is consolidating in the 1.2820 area after springing higher after a failed retest of the lows in the 1.27 area. Today’s low was 1.2723.
