Societe Generale SA has lowered expectations for euro strength, revising its year-end forecast for EUR/USD down to 1.16 from the previous prediction of 1.20, according to Bloomberg.
Growth expectations have weighed on the shared currency, and the “coronavirus crisis isn’t helping with the euro either, with Europe more sensitive than the US to global trade fears.
We misjudged the resilience of US expectations about the economy.
The bank still expects a US economic slowdown, which will eventually weigh over the American dollar.
EUR/USD fell to 1.0778 on Thursday to print its lowest level since April 2017. The currency pair has witnessed a near 90-degree sell-off from 1.1095 over the last 3.5 weeks.