ECB's Lane: There are reasons to believe core inflation will fade

European Central Bank chief economist Philip Lane said on Thursday there are reasons to believe that core inflation will fade even though it holds above 2% for now, per Reuters.

"One percentage point of goods inflation might be attributable to factors we think are temporary," Lane explained. "Core inflation is above 2% now but there are reasons to expect it would fade because of those level effects."

Market reaction

EUR/USD continues to fluctuate in a very tight range around mid-1.1000s after these comments.