Trichet is not ready to signal the all-clear for the European economy. He says the ECB must remain alert and that there is no room for complacency. We are in a difficult and unpredictable environment but he notes that inflation expectations remain firmly anchored.
EUR/USD is under pressure in earely US trade. Stops are seen at 1.3950, not even risking the 1.3940 low seen after the US data yesterday morning. We trade now at 1.3691.