hinsafdar

the Euro is the domestic currency, so you are holding the foreign currency, the pound
would you want your foreign currency to appreciate or depreciate? you want it to appreciate, right?
so, if you forecast that the euro will depreciate by 0.35%, that means the GBP will appreciate by +0.35%
the forward markets are telling you that the euro will depreciate by 0.75%, meaning the GBP will appreciate by +0.75%
so you want to pick the one most beneficial to your foreign currency holding of the GBP, which is +0.75% in the forward markets = you would hedge and get the +0.75% return rather than only the +0.35% gain that you are forecasting if left unhedged