In her prepared remarks for delivery to the European Parliament's Committee on Economic and Monetary Affairs, European Central Bank (ECB) President Christine Lagarde noted that recent indicators point to a further weakness in the economic activity in the third quarter.

Lagarde elaborated by noting a moderation in job creation in the services sector and an overall slowdown of momentum.

Commenting on inflation developments, she said that inflation is forecast to remain "too high for too long" despite the recent decline.

ECB President also said that they are aiming to conclude the monetary policy framework review by Spring 2024, later tan the end-2023 previously planned. 

Market reaction

EUR/USD stays under pressure following these comments and it was last seen losing 0.35% on the day at 1.0615.