ECB’s De Cos: Some shocks in ECB downside scenario have materialised

Some shock in the European Central Bank's downside has materialised according to the ECB policymaker Pablo Hernandez de Cos said who crossed the wires late in the North America session. He previously said earlier this week that risks to the inflation outlook in the eurozone remain on the upside and have intensified, particularly in the short term.

He also said today that the UK situation should not be contagious if properly managed. He says this as the UK 20- and 30-year yields hit 20-year high above 5%
following Andrew Bailey's comments, who is the governor of the Bank of England. The government borrowing costs surged again when Bailey told pension funds they had three days to fix liquidity problems before the bank ends emergency bond-buying that has provided support.

Meanwhile, the euro is under pressure as the US dollar remains the favourite. Earlier today, Minneapolis Fed President Neel Kashkari reaffirmed policymakers' commitment to the current rate-hike path, saying the bar for a shift away from monetary policy tightening is "very high." These comments come ahead of  Thursday's US Consumer Price Index reading which is expected to return to a four-decade high. Meanwhile, prices paid to US producers rose more than expected in September, supporting the greenback, according to data released on Wednesday.