European Central Bank policymaker Joachim Nagel told the German trade journal Zeitschrift für das gesamte Kreditwesen on Monday that he is optimistic that they can avoid a serious economic slump.

"We're not seeing any wage-price spiral in the sense of a further increase in the inflation rate due to current wage agreements," Nagel added and reiterated that the ECB needs to take further action to curb inflation expectations.

Market reaction

EUR/USD showed no immediate reaction to these comments and was last seen trading at 1.0680, losing 0.2% on a daily basis.