Talking fundis,
Yesterday Trichet kind of spooked the markets saying it could (should? would? will?) "act preemptively" (aka rate hike) to cool off inflationary pressure.
Now, that's gonna be a nice place to be: ECB on the verge for another hike while Fed on the verge for a cut.
Actually, Trichet always made it clear that the hike cycle was on hold, since the start of the subprime mess. Time to start betting when he will move the rates again.
Yesterday Trichet kind of spooked the markets saying it could (should? would? will?) "act preemptively" (aka rate hike) to cool off inflationary pressure.
Now, that's gonna be a nice place to be: ECB on the verge for another hike while Fed on the verge for a cut.
Actually, Trichet always made it clear that the hike cycle was on hold, since the start of the subprime mess. Time to start betting when he will move the rates again.