European Central Bank (ECB) policymaker Joachim Nagel said on Monday that monetary policy signals are clearly pointing in the direction of further tightening and added that they will have "a way to go" with regard to additional rate increases, per Reuters.

Nagel further argued that they need to significantly reduce the Eurosystem's balance sheet in the coming years.

Market reaction

These comments don't seem to be impacting the Euro's performance against its rivals. As of writing, the EUR/USD pair was trading at 1.0900, losing 0.1% on a daily basis.