ECB's De Guindos: Long-term inflation expectations are low

In his prepared remarks delivered to the Money Market Contact Group, Luis de Guindos, Vice-President of the ECB, noted that long-term inflation expectations were low and argued that the ECB's monetary policy decisions need to be based on a wide array of economic indicators, not just the unemployment rate and wages.

"There are signs of a tight labour market," De Guindos added. "The current low unemployment rate and the recent wage increases do not necessarily imply that higher inflation is around the corner."

The EUR/USD pair seems to be retreating from its session highs on these comments. As of writing, the pair was still up 0.12% on the day at 1.1004.