ECB’s De Cos: Current inflation increase in Eurozone largely temporary

The European Central Bank Governing Council member Pablo Hernandez de Cos was out with some comments in the last hour and said that the current inflation increase in the Eurozone is largely temporary. The ECB will closely monitor inflation performance and currently do not see a second-round inflation impact. In the event of persistent upward pressure of inflation, ECB has tools at its disposal, De Cos added further.

Market reaction

The remarks did little to influence the shared currency or provide any impetus to the EUR/USD pair, which last seen trading with modest gains around the 1.1815-20 region and remains at the mercy of the USD price dynamics.