European Central Bank (ECB) President Christine Lagarde said on Friday, “ECB will be courageous to take the decisions needed to bring inflation back to 2%.”

“We are heading towards more delicate decisions going forward,” she added.

Meanwhile, the central bank’s monthly Economic Bulletin revealed that “wage pressures have strengthened further as employees recoup some of the purchasing power they have lost as a result of high inflation.”

Market reaction

EUR/USD bulls are recovering ground, eyeing a sustained move above 1.0800 on Lagarde’s comments. The pair is trading at 1.0790, up 0.19% on the day.