20 May | Euro

ECB officials urge region's financial institutions to prepare for potential tariff shocks

ECB officials urge region's financial institutions to prepare for potential tariff shocks

The European Central Bank (ECB) is urging the region's financial institutions to take proactive measures to mitigate the negative effects of the trade standoff with the United States, according to a note from the regulator's economists published on Tuesday.

New US President Donald Trump's unpredictable tariff policies are causing strong market fluctuations and threatening global economic growth, ECB officials emphasize. The US dollar is also under pressure due to the politician's actions, as it has been declining against a basket of major currencies so far this year.

As the central bank's representatives stressed, amid increased volatility, European organizations need to keep a close eye on potential risks and prevent them, maintaining the region's financial stability.

The views expressed by the officials echo the position of ECB Vice President Luis de Guindos, Bloomberg notes.

Elena Berseneva MarketCheese
Period: 27.06.2025 Expectation: 1351 pips
GBPUSD under pressure from weak UK data and dollar strength
20 June 2025 61
Brent sell
Period: 26.06.2025 Expectation: 200 pips
Oil set to drop without further escalation of Middle East tensions
20 June 2025 60
Period: 30.06.2025 Expectation: 27200 pips
Buying ETHUSD during consolidation with 2800 target amid supply shortage
19 June 2025 82
Period: 25.06.2025 Expectation: 1500 pips
BOJ policy uncertainty pushes USDJPY toward monthly peak
19 June 2025 60
Period: 18.07.2025 Expectation: 2700 pips
Selling SPX to 5700
19 June 2025 29
Period: 30.06.2025 Expectation: 1069 pips
NVIDIA shares poised to rise on AI demand and European expansion
18 June 2025 70
Go to forecasts