European Central Bank (ECB) policymaker and Germany’s central bank head Joachim Nagel said in an interview with Stern on Tuesday, the “central bank is still a long way from hitting its inflation goal.”

Nagel noted, “inflation is persistent and thus the European Central Bank must also be persistent on rates.”

Market reaction

EUR/USD is trading on the defensive at around 1.0600, as rallying US Treasury yields outweigh the US Dollar weakness.