While testifying before European Parliament's Committee on Economic and Monetary Affairs, European Central Bank (ECB) President Christine Lagarde said that inflation is projected to remain too high for too long, per Reuters.

Lagarde reiterated that wage pressures have strengthened on the back of robust labour markets and added that employees are aiming to recoup some of the purchasing power. "The key ECB interest rates remain our primary tool for setting the monetary policy stance," she concluded.

Market reaction

EUR/USD keeps its footing following these comments and was last seen gaining 0.5% on the day at 1.0720.