DislikedECB has held lower rates than BOE and the Fed, so they can afford to maintain the stance against inflation instead of against economic slowdown. I heard somewhere today that there is a growing market expectation for 100bps to come off the EUR interest rate this year, which is quite absurd to me. We'll see what happens, but this reminds me a lot of when GBP was way oversold about a month ago due to the same kind of sentiment shift and rebounded strong against all pairs suddenly when the selloff frenzy ended and everyone returned to their senses. This remains to be seen for EUR, but I have to believe it's approaching some levels seen as attractive by big money.
Also, I believe the selloff was justified and expected it but the strength of the selloff is what surprised me.Ignored
"Timing Is Everything. Really I Swear It Is"