Near-Term Euro Cautiousness Is Warranted on Italy, Marinov Says

The transcript discusses market dissatisfaction due to budget issues and potential impacts on the euro. It highlights concerns about political risks affecting the euro and the possibility of economic contagion within the eurozone. Despite these risks, the ECB is expected to continue its policy normalization. Cautiousness is advised in the near term, but a positive long-term outlook for the euro is maintained.

What factors could lead to cautiousness in the currency market according to the text?

What is the expected action of the ECB regarding policy normalization?