ECB's Lagarde tells EU leaders underlying price pressures remain subdued – Reuters

Christine Lagarde, President of the Europen Central Bank (ECB), told EU leaders on Friday that the eurozone economy is recovering and it's expected to return to pre-pandemic levels in the second quarter of 2022, Reuters reported citing an official with the knowledge.

"Continued support of fiscal and monetary policy will be needed to avoid pandemic leaving scars," Lagarde further noted and said that inflation is likely to increase further in the autumn on temporary factors. "Underlying price pressures remain subdued," she reiterated.

Market reaction

These comments were largely ignored by market participants and the EUR/USD pair was last seen posting small daily gains at 1.1942.