Chinese Premier Wen is making a stop in Germany after his Davos appearance. Chancellor Merkel and the Premier have agreed to avoid protectionism and maintain at least 2008 trade levels through 2009. Sounds nice in theory, but it is hard to see how the plan would work in practice, especially from the German perspective.
Merkel says leading industrial nations must not live beyond their means. Americans seem to agree, at least at the moment, and have stopped buying BMWs and Mercedes. How’s that working out for you, Frau Chancellor?
EUR/USD trades in choppy ranges this morning, largely being pushed around by cross flows. Soft US equities are limiting rallies near-term.
