European Central Bank (ECB) policymaker Joachim Nagel noted on Tuesday that inflation in the Euro area has fallen significantly but added that it was still too high, per Reuters.

Key quotes

"We must not let up too soon, rates must be sufficiently high for sufficiently long."

"It is not yet possible to say whether interest rates have already reached their peak."

"There are several upside risks to inflation; geopolitical tensions in the Middle East could drive up energy prices."

"Inflation has proven stubborn and has not yet been defeated."

Market reaction

EUR/USD stays under bearish pressure despite these hawkish comments and was last seen losing 0.45% on the day at 1.0565.