EUR/USD is off the highs following the upbeat US GDP. What’s the trade moving forward? Here is the view from SocGen: Here is their view, courtesy of eFXnews: Societe Generale FX Strategy Research notes that the dollar’s trade-weighted index (TWI) continues to track real yields fairly faithfully, but right now that leaves the dollar in no man’s land. In that context, SocGen notes that the improving correlation of the euro’s TWI with real German bond yields. “It’s more usual to see the euro TWI track EUR/USD, which in turn is more affected by US yields than European ones, but as the latter get stuck in a range, Europe matters more. With strong economic data, fading political concerns and two weeks to go until the June ECB meeting, German real yields are on an uptrend,” SocGen adds. “We worry that EUR/USD has run ahead of relative yields and has been supported by speculative adjusting from a big short to a net long position in a short period of time. That could see positions cut back quite quickly. Still, that’s only another way of saying that EUR/USD is a medium-term buy and a short-term buy on a dip,” SocGen argues. EUR/USD is trading circa 1.1180 as of writing. For lots more FX trades from major banks, sign up to eFXplus By signing up to eFXplus via the link above, you are directly supporting Forex Crunch. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Daily Look share Read Next How to use the Forex Fibonacci Adinah Brown 6 years EUR/USD is off the highs following the upbeat US GDP. What's the trade moving forward? Here is the view from SocGen: Here is their view, courtesy of eFXnews: Societe Generale FX Strategy Research notes that the dollar's trade-weighted index (TWI) continues to track real yields fairly faithfully, but right now that leaves the dollar in no man's land. In that context, SocGen notes that the improving correlation of the euro's TWI with real German bond yields. "It's more usual to see the euro TWI track EUR/USD, which in turn is more affected by US yields than European ones, but… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.