EUR bearish tone intact - Societe Generale

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale, expects the EUR downside momentum to remain for now.

Key Quotes

"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."

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    EURUSD Running Out of Steam On the Hint of Negative Divergence

  2. Forex News

    Forecast: Will Dollar and Equity Declines Evolve into Reversals?

  3. Forex News

    Video: Risk Reversal a Greater Danger Than Dollar Tumble Next Week

  4. Forex News

    US blip temporary, EUR/USD spread to widen - DB

  5. Forex News

    EUR/USD… resilience… or innocence?

Trading Center