EUR/USD lost 1,500 points after ECB President Christine Lagarde said she would be surprised if inflation in the eurozone peaked.

"I would like inflation to peak in October, but I'm afraid I won't go that far," she noted on Monday. "There is too much uncertainty, particularly in the shifting of high electricity costs from the wholesale level to the retail level'.

This suggests that interest rate hikes are far from over.

Although consumer price growth has slowed in November, the figure remains above 10%.

Investors are obviously looking for hints that the ECB will ease its interest rate increases, especially since the Euro area is nearing recession.

Some members of the governing council have already called for a slower pace, following the plans to start writing off around €5 trillion ($5.2 trillion) of bonds that were bought during the recent crises.

Others, however, do not see any reason to give up as inflation is more than five times the 2% target. Dutch central bank governor Klaas Knot said earlier that Europe should be prepared for a "protracted period", during which the ECB would return inflation to target. Bundesbank president Joachim Nagel said the ECB should not ease measures "too soon".