EUR/USD: Unlikely To Go Down Much Even If US Yields Rise Slightly More – SocGen

What is the forecast for EUR/USD in the near-term?

Here is their view, courtesy of eFXdata:

Societe Generale Research  sees a limited scope for EUR/USD downside from current levels in the near-term.

“The question for the dollar is still more one of what happens elsewhere. Bund yields are at -0.1% this morning, their highest level in almost two years. With vaccination rates picking up, economic optimism is likely to improve too and whether the FOMC holds its resolve in the face of upside CPI surprises or not,  we can be pretty sure the ECB will be alarmed if they see any significant uptick in inflation,” SocGen notes.

“We’ll be surprised if EUR/USD goes down much as Bund yields rise, even if US yields rise slightly more,” SocGen adds.

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