ECB’s Nowotny: EU can look after Eurozone problems

Austrian central banker Nowotny says that the European Union is in position to solve possible economic problems in euro zone countries. Presumably he is talking abvout countries like Ireland which are struggling in the wake of the collapse of the credit bubble.

The IMF’s Strauss Kahn is on the wires echoing Nowotny, saying it is possible the Euro Zone countries are strong enough to deal with possible problems without the IMF.

Any reminder of the troubles of the PIGS (Portugal, Ireland, Greece, Spain) is a negative for the single currency, but at the moment, this is a background issue for the market. EUR/USD trades at 1.3557.