EUR/USD further pullbacks appear unlikely – SocGen

In view of Kit Juckes, Strategist at Societe Generale, occasional retracements in the pair could be limited to the 1.0800 area for the time being.

Key Quotes

“We still prefer dollar, longs against the yen to longs vs. the Euro. EUR/USD looks like drifting down to 1.08 or so, but we're still worried about how much Euro softness depends on the ECB crowding private sector investors out of European bonds and the Euro”.

“We've written about how tapering of bond purchases could trigger a Euro bounce, but more broadly, a weaker currency was one of the major channels by which ECB policy has worked but if the Euro is now just range-trading and the ECB has virtually run out of ammunition, then we struggle to see a catalyst for another significantly lower”.