An excellent note from Nordea with which I agree.
Rapid monetary policy tightening is set to continue as also the ECB has turned even more hawkish. Rates have more upside potential left, while the US economy should continue to outperform the Euro area, pushing EUR/USD further down.
75bp rate hikes seem to have become the new norm, at least as far as the ECB and the Fed are concerned, despite the ECB saying the opposite. We expect to see more large hikes, even in the Euro area, where the economic outlook is dreadful and a recession looms.
