More Trichet

Trichet announced the ECB will provide unlimited funding at the 3-month tenor and this seems to be helping euribor rates ease. Separately, Trichet said that while the ECB is looking at various options it will not issue debt certificates to absorb the excess liquidity generated by the sovereign bond purchases.

The euro has recovered and is back near session high, but stopped shy of the high recorded in Europe just below $1.2090. The appetite for risk appears strengthening as emerging market currencies also are joining in today's advance.