European Central Bank Chief Economist Philip Lane said on Thursday that bottlenecks are not expected to get worse and, from here, will ease, according to Reuters. Lane added that he is not seeing inflation expectations moving above the ECB's target. For reference, the most commonly cited measure of Eurozone inflation expectations, the euro 5-year 5-year forward inflation-linked swap, is trading just to the south of the 2.0% level, which is the ECB's symmetric inflation target. Finally, Lane said he expects a pick-up in wage dynamics. 

Market Reaction

Nothing new from ECB's Lane. EUR/USD has not seen any reaction to the comments and continues to trade in the 1.1340 area, up by about 0.2% on the day as the broad dollar rally takes a breather.