ECB’s Villeroy: Spike in inflation is temporary

European Central Bank (ECB) Governing Council member Francois Villeroy de Galhau, in an interview with France 2 TV, reiterated that the recent spike in inflation is temporary. Villeroy further added that the ECB is keeping a careful watch for a possible further rise in inflationary pressure.

Market reaction

The comments did little to influence the shared currency or provide any impetus to the EUR/USD pair, which remains at the mercy of the US dollar price dynamics ahead of the crucial US CPI report.