PIGS Squealing to Trichet

So John Mauldin clued me into the latest acronym. Move over BRIC’s.

The PIGS (Portgual, Italy, Greece and Spain) are clearly in slowdown mode, and have been squealing over the hardline the ECB has been taking. Of course, they have no growth mandate, only inflation, but Trichet and the Bundesbank technocrats are beginning to soften, and the dollar had its best week in a very long time.

Trichet has been resolute, but is showing chinks in his armor. The chatter over an inflection point in the dollar might not be so farfetched after all, and the Global Macro players might be busy unwinding some of these awesome one way bets they have had on.

Euro gives it up against dollar last week

What are oil traders thinking, I wonder.

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