This via the folks at eFX.
Morgan Stanley snippet:
- "We remain bearish on EUR/USD targeting 0.93. Stagflationary concerns continue to rise in Europe as geopolitical uncertainties accelerate. ECB hawkishness may be insufficient to support the currency in a stagflationary environment, we think," MS notes.
- "Moreover, market implied terminal rates for the ECB may be elevated (3%) compared to a more plausible outcome like 2%. The upcoming inflation print will be an important market event as investors seek to gauge the path for Eurozone inflation," MS adds.