European Central Bank President Christine Lagarde said on Tuesday that they are not seeing a wage-price spiral in the Eurozone and explained that wage growth is a part of 'catching up,' as reported by Reuters.

Lagarde further noted that the headline inflation has begun to slowdown but reiterated that they intend to raise the key rates by 50 basis points at the upcoming policy meeting.

Market reaction

These comments don't seem to be helping the Euro find demand. As of writing, EUR/USD was down 0.2% on the day at 1.0662.