06:15 AM EDT, 06/12/2025 (MT Newswires) -- The euro has been doing well this week and seems to be the big winner from the de-dollarisation story, said ING.

A slightly more hawkish European Central Bank has helped, as has some weakness in the currencies of key trading partners, such as the United Kingdom, wrote the bank in a note.

On the calendar Thursday are a lot of European Central Bank speakers. Probably up for discussion is whether the ECB needs to cut rates again in September, stated ING. Price data and the ECB's wage tracker data suggest the ECB does have room to cut.

Markets are just about pricing a cut for December, pointed out the bank.

ING noted that EUR/USD is trading way above levels justified by short-dated interest rate differentials. The bank's baseline remains that this 1.1550/1600 area is the top of a trading range -- unless those rate differentials can have a big move in favor of the euro. However, ING noted the prevailing narrative on de-dollarisation and wouldn't advocate aggressively fighting this US dollar bear trend at these levels.

Elsewhere, it's not something that the spot foreign market typically looks at, but there is a very timely European conference on Thursday on financial integration, added the bank. The ECB and European politicians are keen to push the 'global euro' debate, but holding the euro back is the incomplete capital markets union.

Thursday's conference, 'Advancing the Savings and Investments Union', will seek to cover those remaining 'To Dos', and any new developments here might get greater coverage than usual.

Some softer United Kingdom April gross domestic product data earlier Thursday has seen sterling (GBP) come under more pressure, according to ING.

The bank thinks of the data: "Bit of a disappointing UK April GDP figure - down 0.3% on the month. Not a huge surprise. These figures have been hugely volatile recently. In part, that's a frontloading effect - manufacturing surged in Feb and has unwound since. But in general, there is mounting scepticism about the figures themselves, in particular given that for the past three years, the first half of the year has been stronger than the second, despite the data supposedly being seasonally adjusted. This suggests second quarter growth as a whole will come in around 0.1% or 0.2%, after 0.7% in the first quarter."

This softer GDP data, following the softer wage data earlier this week, will suggest the Bank of England does have good reason to cut rates after all, said ING. EUR/GBP is close to 0.8500 now, and the building narrative of wider eurozone versus U.K. policy rate spreads -- the ECB has nearly finished easing, the BoE could accelerate rate cuts -- warns that EUR/GBP trades to 0.8550 and 0.8600 on a multi-month view.