Inflation risks down but deflation risks have not risen- Trichet

Trichet says flatly that deflation risks have not risen, only that inflation risks have decreased.

EUR/USD is getting a boost from the technical bounce from the 1.3080 area as well as the broad hint from trichet that there will be no cut in February as the meeting is so close owing to the late January meeting.

EUR/USD is targeting highs at 1.3230/35 on the news. Stops are seen around 1.3250.