- Measures taken by ECB so far provide basis for further stabilization efforts
- Spain and Portugal to announce further structural reforms
- EU has shown resolve but not enough to restore confidence
Sounds like Rehn is calling on the ECB to step up its bond buying again as has been rumored in the market today. Tomorrow’s press conference will be closely watched to see if Trichet tips his hand.
EUR/USD continues to retrench, testing support in the 1.3050 area. Downside stops are rumored at 1.3030.