“The current high level of inflation-linked to soaring energy prices, following Russia's invasion of Ukraine, must not be followed by a period of stagflation,” French Finance Minister Bruno Le Maire said on Wednesday.

“Another whatever it costs type economic plan, similar to what France had for covid, would not be the right response to current energy market tensions,” Le Maire added.

Market reaction

EUR/USD keeps its recovery momentum intact, as it recaptures 1.0950 amid a relief rally seen in the global stocks. Focus shifts to the ECB meeting scheduled on Thursday.