The Euro has had a great second week of the year. Société Générale economists expect that EUR/USD tests 1.10 level after disappointing US data this week.
Pullbacks are likely to be seen as a buying opportunity
“Both EUR/USD and EUR/GBP are expensive based on 2-year rate differentials, but pullbacks are likely to be seen as a buying opportunity“.
“The least pessimistic view of the European economy (will there be no contraction of GDP in the fourth quarter?), Inflows into stocks, the prospect of a narrowing Fed-ECB rate spread and improving demand from China bode well for the common currency in the medium term.”
“Disappointing US Retail Sales and a Weak PPI Producer Price Index on Wednesday they would further consolidate the arguments for a 25 basis point hike by the Fed next month and will push EUR/USD closer to the next resistance levels at 1.0940 and 1.10.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
