EUR/USD dipped to a new 2019 low only to bounce back. What’s next?
Here is their view, courtesy of eFXdata:
“Since then, what has really mattered is how expectations of growth have shifted. In 2017, despite rate differentials only briefly moving to support it, the euro rallied on expectations of ECB tapering and of continued strong growth. Partly because those growth expectations were unrealistic, 2018 saw disappointment set in at the same time US growth expectations were repeatedly revised higher. That trend in relative growth expectations has continued pretty much unchecked for nearly 18 months, during which time EUR/USD has trundled lower,”SocGen adds.
For lots more FX trades from major banks, sign up to eFXplus
By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.
Share
