Morgan Stanley: markets misjudged ECB’s ‘hawkish’ meeting
Euro’s exchange rate could soon see a correction as markets reprice their ECB expectations
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Investors have misread the tone of the European Central Bank’s meeting in March and overestimated its hawkishness, meaning the single currency could soon see a correction as expectations are repriced, according to two strategists at Morgan Stanley, which topped FX Week’s one-month currency forecast tables last week.
While the ECB left its benchmark rate unchanged at zero during its March 9 meeting, central bank president Mario Draghi sounded an optimistic tone
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