The euro is on the back foot as the strength of the US Dollar and the Canadian dollar is doing quite well on the new NAFTA deal.
Here is their view, courtesy of eFXdata:
Societe Generale Research discusses EUR/USD outlook and adopts a neutral bias near-term, and USD/CAD outlook and adopts a tactical bearish bias.
“The Euro was hit by a triple-whammy of negative factors at the end of last week which have taken it from the top to the bottom end of its 1.15-1.18 range…
Three hits in a few days isn’t helpful and plays to our view that a return to EUR/USD 1.20 and above will probably have to wait until H1 2019, but we don’t think we’ll see a break from, the current range,” SocGen argues.
“CAD and MXN are enjoying the North American trade agreement, and USD/CAD ought now to head back to 1.25,” SocGen adds.
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