ECB’s Provopoulos: I was misquoted!

Earlier today, Greek central banker Provopoulos was quoted by Bloomberg as saying that the ECB could cut the refi rate below the 1% level that other ECB members have indicated will be the likely floor. He now says the Bloomberg report is inaccurate.Deflation risks are very low, he says.

Elsewhere, Portugal’s Constancio says the ECB is determined to avoid a start of the deflationary process and that there will be a slow recovery in Europe next year.

EUR/USD is trading a touch firmer in early afternoon, around 1.3280. Resistance lies above the market at 1.3320. Stops from short-term specs are eyed at 1.3325/30.