European Central Bank (ECB) Vice President Luis de Guindos said on Thursday that inflation in the euro area was expected to continue to rise over the next several months, as reported by Reuters.

On the same matter, "it is also plausible that medium-term inflation will not revert to the pre-pandemic below-target equilibrium but, conditional on appropriately-calibrated monetary policy, rather may stabilise around the ECB’s 2% target," ECB Chief Economist Philip Lane said earlier in the day.

Market reaction

The shared currency stays on the back foot on Thursday and the EUR/USD pair was last seen losing 0.5% on the day near 1.1100.