No credit crunch in the euro zone though…hahaha
Trichet says that banks should strengthen their capital bases and take advantage of government programs.
Rates remain appropriate, Trichet says, dismissing short-term negative inflation rates.
Governments should prepare “ambitious” exit strategies for fiscal stimulus, he says.
EUR/USD is soft, at 1.4030. Support is firm between 1.3980 and 1.4000. Large stops are perched in the 1.3970/75 area.
