European Central Bank (ECB) Chief Economist Phillip Lane noted on Monday that they are seeing significant wage increases in some Eurozone countries, per Reuters.

Key takeaways

"Cost pressures to be muted next year."

"We should not be too sensitive to monthly inflation data, need to differentiate between noise and signal."

"Inflation jumps we don't like, bumps we can deal with."

"We need to see domestic services inflation momentum come down."

Market reaction

These comments failed to trigger a noticeable reaction in EUR/USD. The pair was last seen trading virtually unchanged on the day at 1.0705.