Trichet makes an interesting analogy. He says the danger of removing accommodative measures too late is that markets could become addicted.
Besides that, there is also the danger that banks that can’t stand on their own are able to survive by being propped up by super-accommodative policy. That will be the true test for the European banking system. Who survives and who doesn’t when the ECB tightens up the spigots.
EUR/USD is consolidating losses in the low 1.48s. Offers are seen in the 1.4820/30 and 1.4840/50 area near-term, traders report.
