Is this ECB price stability chatter all talk and no action?

Two separate ECB governing council heavyweights spoke in NY today and both paid lip-service to price stability.

But with economic growth slowing and sovereign debt loads large and growing, the ECB is unlikely to do much but talk about inflation rather than take any action, like higher policy rates, anytime in the foreseeable future.

EUR/USD continues to edge higher in very light trade, probing sell orders in the 1.3155/60 area. Small stops are seen at 1.3165/70.

We briefly slipped below the 50% retracement of last week’s range at 1.3112 this morning but did not stay down for long. Once the bleeding in European stock markets topped, the euro managed a rebound, which in turn helped lift US shares from there lows.