ECB's Villeroy says downside risks are probably more significant; the ECB has no FX target

ECB's Villeroy says downside risks are probably more significant; the ECB has no FX target.

Villeroy’s comments suggest a more cautious tone from the ECB, indicating that downside risks to the economy are being increasingly acknowledged. This could imply that monetary policy might remain accommodative for a longer period, potentially influencing EUR values and bond markets as traders reassess interest rate expectations.