EUR/USD seems depressed on lower ground and the critical level is awaiting below.
The team at SocGen weigh in:
Here is their view, courtesy of eFXnews:
EUR/USD 1.08 is hiding for now as it seems we’ll need a catalyst to push lower still, says SocGen.
“The currency has moved faster than relative yields and the impression it gives is of growing short euro positioning.
Strong data from the US tomorrow might be enough to keep the move going but it feels a bit stretched in the very short term. We expect we’ll see EUR/USD struggle to move much lower,” SocGen argues.
“The longer global risk appetite can be indifferent to climbing US rates, the better for the dollar in the longer run,” SocGen adds.
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