Morgan Stanley: European Central Bank may make a statement on the recent strength of the Euro.

Morgan Stanley analysts pointed out that the European Central Bank may respond to the recent strong performance of the euro when announcing its policy decision on February 5th. It is expected that the European Central Bank will maintain interest rates unchanged as scheduled, but the continuous strength of the euro since the December meeting may lead to the central bank paying more attention to its exchange rate strength and its impact on inflation suppression. This may prompt the market's expectation of another interest rate cut this year to increase. Given that the current market pricing for further interest rate cuts is relatively low, this may play a crucial role in curbing the rise of the euro.