EUR/USD near a buy area, according to SocGen
Societe Generale Research discusses its latest tactical view on EUR/USD.
"The dollar is expensive, supported by stronger growth and 2-year rates that are 70bp higher than the next highest in the G7 economies . The euro is cheap, dragged down by weak growth, political uncertainty and 2-year rates that are even lower than Japan's. Furthermore the market's long dollars and short euros.
The risk then, is that having broken through the bottom of the recent EUR/USD range, all we do is add another coat of paint to the bottom of it, and settle into a marginally lower range, that is just as claustrophobic as the previous one. Alternatively, we may be entering a buying area If that's the case, the low for this EUR/USD cycle may not be very far from here. Q1 GDP data are due on March 30,"SocGen notes.
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