Citi likes likes EUR/GBP exposure over the coming weeks.
"CitiFX Strategy's noted the ECB was as hawkish as it could be - broad based support for the euro. As a result, we see the meeting as broadly supportive of the euro, including EURUSD. In our strategy portfolio, we are positioned for EURGBP upside (playing the theme of monetary policy divergence) and long EURCNH (playing the theme of China re-opening which will lead to improvement in the euro area’s C/A balance)," Citi notes.
"We also see some upside in EURUSD, and, importantly, EUR appreciating against currencies that are about to face housing stresses due to monetary policy tightening, like the SEK," Citi adds.