Trichet: Euro not in danger but can’t be complacent

The euro is not in danger from the Greek financial crisis but the ECB must not be complacent, the ECB president says.

Trichet stressed that it is essential that countries stick to the principles of the Growth and Stability Pact.

He says the the governing council of the ECB has not yet taken a position on the idea of a European Monetary Fund.

Trichet again dismissed the idea, put forth by the IMF, of allowing inflation rates to drift higher to give central banks more maneuvering room against deflation.

EUR/USD trades in the low 1.3660s after dipping as low as 1.3639 just after the London fixing at 16:00 GMT.