"We have a number of elements suggesting that we're approaching the moment where we're having a pickup," Trichet said at a press conference in Basel, Switzerland on Monday. "But we're still at a level where the positives are not fully priced in. We have to remain alert."

Trichet also said that the impacts of monetary policy and lower oil prices are being underestimated and noted that the corporate bond market has improved in 2009.

"It seems to us that there is also an under-assessment of the expansionary effect of the fiscal expansion," Trichet added.

Trichet also said markets have room to price in more of the positive aspects of the economy, including a commitment to prevent systemic failures.

Furthermore, Trichet said deflation is not a very likely probability at a global level and that the lack of confidence continues to be the source of the turmoil, with uncertainty remaining high in his view.

Written by CEP News European Staff, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Stephen Huebl, This email address is being protected from spam bots, you need Javascript enabled to view it

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