Home EUR/USD Heading ‘Erratically’ Towards 1.20, and EUR/JPY to 130

EUR/USD Heading ‘Erratically’ Towards 1.20, and EUR/JPY to 130

The euro is on an uptrend against the dollar and even more against the yen. The team at SocGen see even further gains.

Here is their view, courtesy of eFXnews:

Societe Generale FX  Strategy Research argues that the ECB isn’t going to hike rates soon, but how fast they move to reduce the pace of bond purchases probably does depend on how much the euro rallies.

“But the turn in the economy is pretty plain for us all to see. This week it has been the IFO survey and money supply data that show a continued acceleration in underlying loan growth. So, of course, the lifespan of extraordinarily easy policy settings (particularly asset purchases) is shortening.

The ECB can’t normalise monetary policy without sacrificing the extreme cheapness of the currency, but maybe the ECB President thinks he can avoid a disorderly currency correction if he manages to guide market expectations,” SocGen argues.

From here, we still think we’re a heading, erratically, towards EUR/USD 1.20 and above EUR/JPY 130,” SocGen projects.

For lots  more FX trades from major banks, sign up to eFXplus

By signing up to eFXplus via the link above, you are directly supporting  Forex Crunch.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.