According to to latest Financial Stability Review published by the ECB, financial stability risks in the euro zone are contained but remain significant and have even increased in some areas over the past six months.
The Financial Stability Review provides an overview of the possible sources of risk and vulnerability to financial stability in the euro area.
Concerns over debt sustainability have risen, while the clean up of the banking sector remains slow and the risk of repricing in bond markets is significant, leading to potential losses, ECB said.
EURUSD is still in a uptrend on the larger time frame, but from a short time perspective now is consolidating before key news for this pair today, FOMC minutes at 9:00pm.
Ahead of FOMC minutes scheduled at 9:00pm, EUR is gaining against USD after reacting to the area between 1.1178 and 1.1161. On the upside, first potential resistance area is located at the range between 1.1244 and 1.1262. During release of FOMC minutes we expect to see an increased volatility.