12 Aug 2015
EUR/USD seen higher in the short-term – Societe Generale
FXStreet (Edinburgh) - Kit Juckes, Strategist at Societe Generale, sees chances of the pair to tick higher in the very short term.
Key Quotes
“With the Fed still data-watching, a September rate hike will be back on the table and back in markets’ minds if tomorrow’s US retail sales are strong, but the lack of data so far this week leaves the field open for US yields to fall and bets on how much the Fed can hike rates in the coming year(s) to be pared back”.
“EUR/USD still tracks the Bund/Treasury yield spread more closely than the front end of the curve, bizarrely, and the 10yr spread is now at its narrowest in more than six months”.
“That can take EUR/USD higher today (Euro Area industrial production data due, exp +0.1% m/m. +1.5% y/y), before the more important US data tomorrow”.
Key Quotes
“With the Fed still data-watching, a September rate hike will be back on the table and back in markets’ minds if tomorrow’s US retail sales are strong, but the lack of data so far this week leaves the field open for US yields to fall and bets on how much the Fed can hike rates in the coming year(s) to be pared back”.
“EUR/USD still tracks the Bund/Treasury yield spread more closely than the front end of the curve, bizarrely, and the 10yr spread is now at its narrowest in more than six months”.
“That can take EUR/USD higher today (Euro Area industrial production data due, exp +0.1% m/m. +1.5% y/y), before the more important US data tomorrow”.