In its Economic Bulletin article published on Monday, the European Central Bank (ECB) noted that the wage growth in the next few quarters to be "very strong" but real wages will fall further in the coming months.

Additional takeaways

"Wage growth over the next few quarters is expected to be very strong compared with historical patterns."

"This reflects robust labor markets that so far have not been substantially affected by the slowing of the economy, increases in national minimum wages and some catch-up between wages and high rates of inflation."

“But the expected economic slowdown and uncertainty about the outlook are likely to put downward pressure on wage growth beyond the near term.”

Market reaction

EUR/USD keeps its range below 1.0700 on the release of the ECB Bulletin, trading 0.35% higher on the day at 1.0680, as of writing.