ECB's Knot: Expecting slowdown in PEPP pace

In an interview with Bloomberg TV on Tuesday, European Central Bank (ECB) policymaker Klaas Knot said that he expects the ECB to start reducing the pace of the Pandemic Emergency Purchase Program, as reported by Reuters. 

On a similar note, "we are now in a situation where we can think about how to reduce the pandemic special programs," said ECB policymaker Robert Holzmann earlier in the day. He further noted that he expects to discuss fourth-quarter tapering at the next meeting.

Market reaction

Despite these hawkish comments, the EUR/USD pair is having a difficult time preserving its bullish momentum and was last seen clinging to small daily gains at 1.1805.