EUR/USD consolidated previous levels in an easy start to the week. The key to its recovery awaits on the other side of the week.
Here is their view, courtesy of eFXdata:
Societe Generale Cross Asset Strategy Research discusses EUR/USD outlook and maintains a tactical neutral bias.
“This week’s main European events are the ECB’s Sintra Conference, upstaged by last week’s Council meeting, and Friday’s flash PMI releases. A turnaround in the euro’s fortunes is very unlikely until the data turn around and the PMIs are the visible sign of that.
Last week’s positioning shows that the market is being very slow in clearing out stale euro longs and while the positioning doesn’t tell us what happens next, the risk is that there are enough longs to force an acceleration to the downside of EUR/USD 1.15 breaks, and to limit any bounce in a calmer start to the week,” SocGen argues.
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