European Central Bank (ECB) Governing Council member and Lithuanian Central Bank Governor Gediminas Simkus said on Wednesday, warned that Europe’s economy could face ‘huge’ economic loss if tensions escalate further between Russia and Ukraine, per Bloomberg.

Key quotes

“The situation adds uncertainty; if it escalates, it will obviously have an impact on our economies, on the Lithuanian economy, on the euro-area economy.” 

“We, Europe and the others need to find, a decision leading to de-escalation, as further escalation means huge loss, and not only in terms of economic wealth but also losses in terms of lives.”

“We’re dealing with something that we call undeclared sanctions” and need help from European partners to respond.”

“It’s of crucial importance to have a single and uniform answer to this threat that Lithuania has experienced.”

Market reaction

EUR/USD was last seen trading at 1.1285, down 0.10% on the day, as the US dollar catches a fresh bid amid a rebound in the US Treasury yields. All eyes on the Fed decision.