Commenting on inflation, the European Central Bank (ECB) President Christine Lagarde said that “inflation drivers are to fade over the medium-term.”

Additional quotes

“Inflation rates to increase further until year-end.”

“ECB must not rush to prematurely tighten policy.”

“Need to reach 2% price target on a durable basis.”

“As positive demand forces gain strength, inflation outlook will be better than before the pandemic.”

Market reaction

EUR/USD is pressuring lows near 1.1330 on the above comments. Although it seems more to be the US dollar’s strength that is weighing on the main currency pair. The spot is down 0.30% on the day.