European Central Bank (ECB) policymaker Francois Villeroy de Galhau said on Tuesday that the Eurozone was not very far from the peak of inflation, as reported by Reuters.

"I don't think we have to choose between fighting inflation and avoiding a recession," Villeroy added and said the better economic environment makes their monetary tasks easier.

Market reaction

EUR/USD stays on the back foot following these comments and the pair was last seen trading at 1.0710, where it was down 0.18% on a daily basis.