EUR/USD recovered thanks to the successful Trump-Xi summit but then returned back down. What’s next?
Here is their view, courtesy of eFXdata:
Societe Generale Research discusses EUR/USD tactical outlook and maintains its view that a break of 1.4050 is still needed to shift into a bullish bias in the near-term. (see here)
“The euro’s benefited from the risk mood and the weaker dollar, and is helped by a narrower BTP/Bund spread this morning as well, amid signs that among all the other geopolitical rapprochements, the Italian Government is prepared to make further concessions on its budget in order to appease the EU,” SocGen notes.
“A positive EUR/USD mood, however, needs to see a break of the Q4 downtrend and probably, a break of 1.1450 is the first instance,” SocGen argues.
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