EUR/USD slips in early trade. Trichet: We are still in period of economic contraction

EUR/USD has slipped lower in early European trading, presently at 1.4345.

Comments from ECB’s Trichet on the wires. He feels we’re still in a period of economic contraction. The freefall is over, but must remain cautious.

ECB is doing a lot to support the financial system. There are still though obstacles to the credit on offer and banks should do their job, which is to lend.