Trichet does not see improved economic performance as written in stone for 2010, saying recent data has shown pockets of strength (PMI reports) but also weakness, like retail sales today.

He warns all euro area countries not to cut taxes until budgets are back in line, after being questioned on Germany’s plans.

EUR/USD has come under pressure, dipping back into the 1.4870s on selling from a US investment bank.

UPDATE at 14:18: Press conference ends with EUR/USD back where it started around 1.4877.