The European Central Bank (ECB) President Christina Lagarde was out with some comments in the last hour, saying that inflation is still supply-driven and we are not in a situation of surging demand. She further added that the markets should not translate any words by the central bank as being any percentage point move.

Market reaction

The remarks reaffirmed the base case scenario of a 25 bps rate hike in July and provided modest lift to the shared currency, pushing the EUR/USD pair beyond the 1.0700 mark, to a fresh monthly peak.