ECB’s de Guindos: Financial stability risks remain elevated

European Central Bank (ECB) Vice President Luis de Guindos said in a speech during European trading hours on Wednesday that there are noticeable downside growth risks due to geopolitical woes.

Additional remarks

Financial stability risks remain elevated as valuations are stretched in increasingly concentrated asset markets.

Banks should maintain sound solvency and liquidity positions to enable them to absorb potential shocks ahead.

High uncertainty in the global environment does not appear to be reflected in current market pricing.

Geopolitical risk noticeably raises downside risks to growth.

Market reaction

The impact of ECB de Guindos' comments remains insignificant on the Euro (EUR) as they lacks cues on the monetary policy outlook. As of writing, EUR/USD trades flat around 1.1645.