The ECB Is Paying More Attention to Banking Stress

Three ECB speakers have come out and say that they do support further hikes. The fundamental macro signals in the euro area suggest this is likely to be the case because coin-flation is still very high. There's a lot of uncertainty, as you say, about the timing of the PMI and will it account for the banking stressBecause it has been very sudden. Nevertheless, we do expect the PMI to fall mirroring what we saw with SENTX,. And we do think that the euro is going to enter a session, beginning in Q1 2023.