European Central Bank (ECB) Governing Council member and German central bank head Joachim Nagel said Wednesday that expectations are rising according to various surveys of households and businesses and worries that "all this suggests that higher inflation rates will prevail in the near future and that inflation expectations could become less anchored".

Nagel reiterated a June end to QE and a rate lift-off in July. He added that he is willing to play ball with the ECB script in making both conditional on incoming data and on new projections, per IFR News.

Market reaction

EUR/USD is on a gradual recovery, currently trading around 1.0550, adding 0.25% on the day. The pair awaits ECB President Christine Lagarde’s speech for the further upside.