Why he didn’t say this this morning is beyond me, but ECB President Trichet tells a television interviewer that the Bank does not intend to cut rates to “very low levels”. He earlier today warned over being caught in a liquidity trap, which he hurriedly defined as “very low interest rates”. he did not rule out quantitative ease at this morning’s press conference, which seems odd when juxtaposed to the comments about not cutting rates too low.
Also just crossing the tape is news that the Irish government has to nationalize Anglo Irish Bank.
EUR/USD is steady at 1.3160.
