Eur and Trichet

Finally, the Trichet man , whom I never trusted , confirms a weakening economy and further contraction. Must say all the jawboning since a year or so ago, has lost its lustre. Fundamentaly, germany is the engine of the EU, since last year spain, and others were crumbling but mkt prefered to bet on the lesser of the 2 evils. What were the keys... oil . Crude oil staying at or below 100 wud be a decisive consideration in how the big pic will turn out. looks like 1.3750 lvls for the eur first. How the EU handles the contagion wud be an issue too. But mkt is helping by selling it down. Suspect more to come from a contracting EU going into 2009. rate cut there sgould be a given in the near term.