EUR/USD: Return below 1.05 inevitable if NFP surprises to the uspside – SocGen

EUR/USD resumes the downside to start the last quarter of the year. Economists at Société Générale analyze the pair’s outlook outlook. 

Seasonality bearish in October

US ISM services and payrolls data may decide whether new lows below 1.05 are inevitable in October, or whether the rebound above 1.06 has legs. 

Demand for Dollar liquidity for year-end purposes typically weighs on EUR/USD in early Q4.

Euro inflation below forecast in September cements ECB pause in October/December.

See – EUR/USD: The 1.0490/1.0500 area could easily be retested this week – ING