Usually among the most hawkish of ECB members, Germany’s Weber sounds quite pragmatic this morning. He says that central bank shave sent a clear signal that they will do everything needed to prevent the crisis from worsening.
The only problem is that the market has been acting like a junkie, looking for a quick fix on what seems like a daily basis/ Huge, unprecedented policy moves are chewed up and spit out on a daily basis. At some point the market will take stock of the cumulative impact of what has been done in the last week and risk aversion will receded. EUR/JPY will be the major beneficiary; yields will rise out the yield curve and stocks should stabilize and then rebound.
