EUR/USD: Key levels to watch to the downside is 1.0485/1.0448 and 1.0660 on the upside – SocGen

EUR/USD is in wait-and-see mode. Economists at Société Générale anlayze the pair’s outlook. 

The retracement below 1.06 is difficult to square

For EUR/USD, the retracement below 1.06 is difficult to square with the narrowing of 10-year real bond spreads below 190 bps, so we will have to waitand see if an adjustment higher in the single currency takes place, or whether spreads move back in favour of the dollar after the Fed and US payrolls. 

Technically, key levels to watch to the downside is 1.0485/1.0448 and 1.0660 on the upside.