Economists at Goldman Sachs said in a note on Friday that they now expect the European Central Bank (ECB) to raise interest rates by 25 basis points (bps) in May vs. the prior estimate of 50 bps, pushing the terminal rate to 3.50% from 3.75%.

Additional quotes

“Believe the ECB remains in tightening mode despite financial market volatility.”

“We expect Europe's core inflation to remain firm in the coming months, moving up further to 5.8% YoY in March.”

• EUR/USD refreshes day high above 1.0640 as hawkish Fed bets diminish, USD corrects further