Jean-Claude Trichet takes note at the slowdown in Europe, but leaves room for rate hikes. He says that further moves are warranted, depending on developments. This is less firm than expected. The words “monitor very closely” appear only later in his statements. EUR/USD now bounces back, also due to the flexibility towards Portugal. He also explains the decision to raise the rates (as expected) and is hinting about future policy. Every word is important for the euro, and has an impact for a long time. Apart from future moves, Trichet will probably be asked about the debt crisis, and if the ECB will accept a roll over ... (full story)