European Central Bank (ECB) President Christine Lagarde said on Friday that she expects inflation in the Euro area to continue to fall with lagged price pressure fading out, as reported by Reuters.

"Historically high wage growth, related to tight labour markets and compensation for high inflation, will support core inflation over the projection horizon, as it gradually returns to rates around our target," Lagarde further noted in her prepared statement delivered at the IMF spring event.

Market reaction

The EUR/USD pair showed no immediate reaction to these comments and it was last seen rising 0.1% on a daily basis at 1.1060.