European Central Bank (ECB) policymaker Joachim Nagel said on Wednesday that firms need to absorb some of the recent strong increase in wages, per Reuters.

"We are expecting wage increases to have some effects on prices," Nagel added and noted that they do not see any evidence of a self-reinforcing spiral.

Market reaction

These comments don't seem to be having a significant impact on the Euro's performance against its major rivals. At the time of press, EUR/USD was down 0.25% on the day at 1.0672.