We don’t think the time has come to exit extraordianrly liquidity measures but we can withdraw them fast if we want, says Austrian central banker Nowotny.
Far from withdrawing liquidity, central bankers have recently signaled their willingness to keep rates low for a long-time, thus hurting the greenback, the most plentiful of the low-yielding currencies.
EUR/USD is consolidating in the 1.4560s while cable is holding in the 1.6650 area after its rally stalled jusy shy of 1.6689, the 61.8% retracement of the 1.7045/1.6110 decline.
