The ECB’s Trichet, chairing the BIS meeting of central bankers in Basle, Switzerland, says that the group agrees that the global economy is nearing an inflection point. GDP falls are slowing down and some economies are already seeing growth. While improvement may lie ahead, it is no time for complacency, Trichet says. Trichet says they discussed exit strategies for the extraordinary measures underway around the globe. FX rates were not discussed, he said.
EUR/USD is consolidating losses as the reflation trade sustains an overdue pullback. The US economic calendar is light, so it might be a good day for some backing and filling. 1.3515 is first support on note on dips near-term. We trade now at 1.3580.
