European Central Bank President Christine Lagarde said on Wednesday that the Governing Council has started discussions on quantitative tightening (QT), as reported by Reuters.

Lagarde further noted that they will continue to discuss QT but said that the interest rate is the most appropriate tool in current circumstances.

"Monetary and fiscal policy must cooperate, with fiscal policy focusing on the most vulnerable," she added.

Market reaction

These comments don't seem to be helping the shared currency gather strength during the American trading hours on Wednesday. As of writing, EUR/USD was trading at 0.9695, where it was down 0.8% on a daily basis.