"I’m confident that those net purchases will continue throughout next year. Beyond that, I don’t know,” the European Central Bank (ECB) Vice President Luis de Guindos said in an interview with Les Echos on Tuesday.

These comments clearly suggest that a rate hike by the ECB is not on the table until the QE program ends.

Market reaction

EUR/USD is recovering ground above 1.1300 amid an extended sell-off in the US Treasury yields, as risk-aversion returns with worries over the Omicron covid variant.