Euro: Fed repricing supports gains against US Dollar – Societe Generale
Societe Generale strategists highlight that EUR/USD has squeezed above key resistance as Dollar weakness follows softer United States (US) employment data and reduced odds of a September Fed hike. The pair is seen slightly expensive versus nat gas but near fair value on 2-year spreads.
Societe Generale strategists report that the EUR/USD exchange rate has broken above a resistance level after weaker-than-expected US employment data and a lower chance of a September Federal Reserve interest rate hike. Compared to natural gas, the pair appears somewhat expensive, but near fair value when considering 2-year spreads.
If the European Central Bank (ECB) raises rates again while the Federal Reserve (Fed) maintains its current stance, EUR/USD could gain further, with the next resistance zone pinpointed around 1.1610/1.1625.
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Also reported by 1 other outlet
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