FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale, expects the EUR downside momentum to remain for now.
"There are clamours for a weaker Euro. Nothing new there, and perhaps the folks at the FT gave the story so much space on the front page of their paper because yesterday was a slow news day."
"But it is all coming together for Euro bears, if they can summon up a deal of patience. EUR/USD spiked to 1.37 at the end of June but failure to break any higher than that keeps the downtrend in place since early May intact."
"We may be in a 1.35-1.37 range for July/August, but the stage is being set for a move down from September onwards if the US sees a pick-up in both wage growth and in inflation after the holidays. The only question is whether it's woth the bother fretting too much about EUR/USD when trading the divergence between Europe and US is much more straightforward in bond-land. 5yr IRS differential has another 70bp to go to get to 2005 wides."