European Central Bank (ECB) Chief Economist Philip Lane noted on Monday that inflation in the eurozone is expected to remain high in the near term but added that long-term inflation expectations stay close to 2%, as reported by Reuters.

Commenting on the policy outlook, "a steady pace - that is neither too slow nor too fast - in closing the gap to the terminal rate is important for several reasons," Lane explained. "The appropriate size of the individual increments will be larger the wider the gap to the terminal rate and the more skewed the risks to the inflation target."

Market reaction

The shared currency preserves its strength after these comments and EUR/USD was last seen gaining 0.53% on a daily basis at 1.0013.