A snippet from HSBC on their euro outlook.

  • Its chief merit for some is that it is not the USD, but with the market already fairly priced for hikes, the upside may be limited.
  • Downside risks include economic weakness and any disappointment regarding the ECB's new policy tool to reduce fragmentation risks.

HSBC are looking for a lower EUR/USD and a sideways EUR/GBP.

EUR/GBP chart:

eurgbp chart 28 June 2022