ECB President Christine Lagarde reiterated the need for caution when discussing monetary easing on Thursday. We still think markets are right to price in a first cut in June but are overestimating the size of total easing, which we expect to be 75 bps vs 115 bps priced in.

The good EUR/USD momentum is a mere reflection of the Dollar correction. 

We feel EUR/USD can stabilise around current levels today but still faces some downside risks in the short term.