The European Central Bank (ECB) top supervisor Andrea Enria warned Thursday, even though the economic outlook has improved, caution remains of the essence.

Additional quotes

“Keeping a very close eye on the build-up of risks on bank balance sheets.”

“Seeing a build-up of residential real estate vulnerabilities in some countries.”

Market reaction

EUR/USD is back above the 1.1600 mark, benefiting from the extension of the losses in the US dollar across the board. The risk-on mood is further aiding the pair’s recovery from multi-month troughs of 1.1524.

The spot was last seen trading at 1.1605, gaining 0.13% so far.