European Central Bank (ECB) Governing Council member Martins Kazaks said on Friday that geopolitical issues were slowing down growth in the Euro area but added that it would be the worst to be premature on rate cuts.

Kazaks noted that negative supply-side shocks are a reason to be patient, even though the Red Sea situation had been contained so far.

Market reaction

EUR/USD showed no immediate reaction to these comments and the pair was last seen losing 0.15% on a daily basis at 1.0830.