The euro lost some ground the dollar in limited range trading. However, this tired rally may make way for gains down the road.
Here is their view, courtesy of eFXnews:
Societe Generale Cross Asset Strategy Research discusses EUR/USD outlook and maintains its bullish medium-term bias over the coming months.
“EUR/USD tested 1.2450 and then fell just below 1.23 during Mario Draghi’s ECB press conference a week ago. It’s not really moved out of that range since. Softer US yields don’t help much when Bund yields are falling too.
Neither the long-term story (ECB heading towards policy normalization, EUR/USD heading to 1.30) or the short-term story (a tired rally) seems set to change,” SocGen argues.
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