European Central Bank (ECB) governing council member Gabriel Makhlouf said on Wednesday that key rates are likely to stay there once they reach the "top of the ladder of increasing interest rates," per Reuters.

"Again I'm not going to say how long that will be, but I know some people in markets are pricing in cuts in rates at the end of the year and I'd be interested in how they are coming to those judgements," Makhlouf further added. Regarding the rate outlook, he explained that it would be a "question of judgement" whether they will need to continue with rate hikes after summer.

Market reaction

EUR/USD clings to modest daily gains above 1.0700 following these comments.