Citing a source familiar with the matter, Reuters reported on Wednesday that the European Central Bank's (ECB) revised projections will put inflation "comfortably above" 2% in 2024 and "slightly above" 2% in 2025.

The ECB will announce its interest rate decision and release the quarterly projections on Thursday, December 15.

Market reaction

EUR/USD seems to have gained traction with the initial reaction to this headline. As of writing, the pair was trading at 1.0663, where it was up 0.3% on a daily basis.