Christine Lagarde, President of the Europen Central Bank (ECB), said on Thursday that they continue to view the inflation upswing as being largely driven by temporary factors, as reported by Reuters.

Additional takeaways

"The rebound phase of the euro area economy is increasingly advanced."

"We see the risks surrounding the euro area growth outlook as being broadly balanced."

"Price pressures could become more persistent if supply bottlenecks last longer or wages rise more than is currently anticipated."

"There is no evidence of significant second-round effects through wages."

"The governing council regularly recalibrates the net purchases under the Pandemic Emergency Purchase Programme (PEPP) based on a joint assessment of financing conditions and the inflation outlook."

Market reaction

The EUR/USD pair edged slightly lower from session tops after these comments and was last seen gaining 0.14% on the day at 1.1608.