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ECB President Trichet Attempts to Calm Financial Fears, Euro-Dollar (EURUSD) Holding At 1.3560

Tuesday, 07 October 2008 06:06:46 GMT

Written by DailyFX Research

Trichet stressed ECB ready to provide liquidity as long and as much as needed. Speaking after yesterday's Ecofin meeting Trichet said that the central bank confirmed as in the past that it is prepared to provide the market with all the liquidity it needed and that it will continue to do so. Trichet also said that when a problem jeopardizes the financial system then governments must take action. Trichet did not hint at the possibility of rate cuts or any other measure to revive interbank lending, which has dried up despite the ECB's generous provision of funds. Meanwhile, the euro-dollar (EURUSD) bounced higher to hold around 1.3560 after falling to an intraday low of 1.3476.

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