While testifying before the European Parliament's Committee on Economic and Monetary Affairs on Wednesday, European Central Bank (ECB) President Christine Lagarde said that the economic growth in the Eurozone will be weaker in the near term, per Reuters.

Key takeaways

"Further ahead, the Euro area’s economic recovery should start to gather some steam."

"The medium-term economic outlook is uncertain."

"Inflation is expected to temporarily increase in the fourth quarter of this year."

"Inflation to decline to target in the course of next year."

"We are therefore not pre-committing to a particular rate path."

Market reaction

EUR/USD edges slightly lower following these comments and was last seen losing 0.18% on the day at 1.0490.