Looks like I spoke too soon on the SNB leaving the stage. Traders say that they were spotted buying USD/CHF just a short time ago around the 1.3040 level. EUR/USD has pulled back on the talk, now around 1.4650.
One the wires, Fed’s Kohn says that high level of reserves in the US banking system have not caused inflation expectations to rise or banks to “reach” to make loans (make loans to uncreditworthy borrowers).
At the same conference ECB’s Orphanides said that the ECB is taking clues from inflation expectations is the best single way to asses risks to monetary policy.
Both EU and US bond yields are near their recent lows, showing inflation expectations are quite contained in the near-to-medium term…