Trichet: Low rates not supporting new bubble

Trichet replied “certainly not!” when asked if low rates were supporting a new bubble. Rates are appropriate at the moment and now is not the time for an exit strategy, he said.

EUR/USD is a tad firmer after a dip below 1.4850 on Trichet’s mildly EUR-negative comments on currency volatility and talking down the EUR as a reserve currency. We trade now at 1.4850.