While testifying before the Committee on Economic and Monetary Affairs of the European Parliament, European Central Bank (ECB) President Christine Lagarde said that they intend to raise key rates by 25 basis points at the July policy meeting.

Additional takeaways

"Euro area activity is being dampened by high energy costs, intensified supply disruptions and greater uncertainty."

"Price rises are becoming more widespread across sectors and measures of underlying inflation have risen further.."

"We expect to raise the key ecb interest rates again in September."

Market reaction

EUR/USD seems to have lost its bullish momentum but continues to trade in positive territory slightly above 1.0500.