EUR/USD: Trichet and Bernanke in Inflation Smackdown

Money supply is important, says Trichet. No it isn't, says Bernanke. Is too, says Trichet. Thus concludes today's Money Supply Smackdown. And the winner? Who cares? For all its focus on money supply, the ECB has ignored it when it was convenient and stressed it when it chooses. Market really couldn't care less. EUR/USD is a shade softer in its range with some profit-taking seen in EUR/JPY this morning. A few small stops are eyed below the 1.2850 level. It trades at 1.2867.