European Central Bank (ECB) Governing Council member Jose Luis Escriva stated late Monday that the risks to Eurozone economic forecasts are tilted more towards the downside than the upside, according to Bloomberg.
Escriva noted that while more disruptive scenarios have not materialized, they could still take markets by surprise, emphasizing the need for caution and preparedness to revise forecasts if necessary. He acknowledged some upside risks, such as fiscal policy, but emphasized that the downside risks are more pronounced.
Referring to global uncertainty, Escriva pointed out that current levels of uncertainty are the highest since records began, surpassing even major events such as the COVID-19 pandemic, the war in Ukraine, 9/11, and the 2008 Lehman Brothers collapse.
Market reaction to his comments saw the EUR/USD pair rise by 0.27%, trading at 1.0801 at the time of writing.
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