ECB's Makhlouf: Growth across euro area has improved strongly

European Central Bank governing council member Gabriel Makhlouf noted on Friday that the growth across the euro area has improved strongly since the pandemic, as reported by Reuters.

Additional takeaways

"Temporary inflationary effects are expected to dissipate in 2022."

"Inflation is likely to weaken again to levels below 2% over the medium-term."

"There is, however, considerable uncertainty about the persistence of price pressures."

"We need to interpret this data and the outputs of our models with caution."

"Pandemic is bringing about structural changes in our economy, which may only become more evident over time."

Market reaction

Investors paid little to no attention to these remarks and the EUR/USD pair was last seen clinging to modest daily gains at 1.1780.