Speaking on the sidelines of a Group of Seven (G7) meeting in Japan, European Central Bank (ECB) policymaker and Bundesbank Chief Joachim said on Friday, the latest interest rate hike won't be the last as it needs to ensure the current wave of inflation comes to an end.

Key quotes

“Current data did not indicate that the ECB should change its thinking on the need for further rate hikes.”

"We need to be sure that the latest inflation wave ends.”

Market reaction

Despite the hawkish comments from Nagel, EUR/USD is erasing gains to trade flat at 1.0910, as of writing.