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- "EUR/GBP to trade sideways from here: We expect a range-bound EUR/GBP as Europe faces a similar growth slowdown, with continued geopolitical uncertainty and elevated inflation weighing heavily on consumers disposable income," MS notes.
- "While the ECB is due to start its hiking cycle, we think policy normalisation will be gradual as the weak growth outlook leads to a pause in hiking after the deposit rate hits0%," MS adds.
Remarks from Lagarde reported the past few sessions have given EUR a bit of a lift:
- ECB's Lagarde: We are likely to be in a position to exit negative rates by end of Q3
- ECB President Lagarde has indicated July is likely lift off for rate hike
