Reuters has quotes from an CNBC interview with Trichet. Presumably the fetching Sylvia Wadwa has the exclusive. He reiterates that the ECB is not under any pressure to take any action that they would not otherwise take. Rates are not necessarily at their lowest level but are appropriate for now. A very large part of the covered bond market in Europe is eligible for the ECB’s “enhanced liquidity” program, he says.
EUR/USD has dipped back below 1.4200 with some interest seen to sell rallies ahead of the US employment report tomorrow. Speaking of NFP, hit this link to enter our contest.