European Central Bank policymaker Joachim Nagel said the ECB would respond swiftly and decisively if higher energy costs linked to the war with Iran lead to a sustained rise in inflation across the euro area.

Earlier, investors briefly considered the possibility that central banks might be forced to tighten policy again, with markets temporarily pricing in two ECB rate hikes on Monday. However, those expectations eased after U.S. President Donald Trump described the conflict as “very complete.”

The ECB is widely expected to keep interest rates unchanged at its meeting next week, while presenting potential scenarios for economic growth and inflation should the conflict persist.

Meanwhile, the EUR/USD pair is trading near a potential support area where buyer activity could re-emerge. From the macroeconomic side, markets are awaiting the release of U.S. inflation data later today.