European Central Bank chief economist Philip Lane said on Thursday there are reasons to believe that core inflation will fade even though it holds above 2% for now, per Reuters.

"One percentage point of goods inflation might be attributable to factors we think are temporary," Lane explained. "Core inflation is above 2% now but there are reasons to expect it would fade because of those level effects."

Market reaction

EUR/USD continues to fluctuate in a very tight range around mid-1.1000s after these comments.