European Central Bank (ECB) Vice President Luis de Guindos said on Monday that the macroeconomic environment is subject to "enormous uncertainty," especially after the latest Israel-Gaza conflict, per Reuters.

De Guindos said that he was expecting inflation to continue to decline in coming months but urged for caution, citing "evolution of oil prices, the depreciation of the euro and the evolution of unit labour costs."

Market reaction

The EUR/USD pair stays on the back foot and was last seen losing 0.5% on a daily basis at 1.0535.