SocGen on the euro
Societe Generale Research discusses EUR/USD outlook and sees a scope for the pair to continue trading in its current 1.12-1.16 range in the near-term.
"The
ECB released current account data for December that show European
buying of foreign long-dated debt slowing, and foreign selling of
Euro-denominated long-term debt slowing too. The result is that the net
outflow of long-term cash has slowed a lot, as the ECB has slowed its
own bond purchases.
The ECB is no longer a big driver on how Europe's current account surplus is recycled, which is euro-positive but is also offset by all the euro negatives out there," SocGen notes.
"We struggle to see how EUR/USD escapes it 1.12-1.16 range any time soon," SocGen adds.
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