The ECB is more likely to react to inflation pressures this time around compared to 2022, starting from a higher rate base, which is more positive for the Euro.
Dollar outperformance undermined by confidence issues.
There is an underlying sense of less confidence in the dollar's performance globally, as seen in the UAE seeking a swap line and similar trends in the Middle East and Asia, which gradually undermines the degree to which the dollar can outperform.
The BOE is more likely to see rates come down, and if rates need to go up, the ECB will hike faster due to differences in labor market tightness and demand, supporting EUR/GBP.