EUR/USD: Range persists as Dollar outperforms – Societe Generale
Societe Generale’s Kit Juckes notes that EUR/USD ‘fair value’ is near 1.1150 after the latest US CPI-driven rates move, leaving the pair stuck in a range. He stresses that the US economy continues to outperform and keeps a year-end EUR/USD target of 1.10. Upcoming US PPI data may draw extra focus following CPI.
Societe Generale's Kit Juckes points out that EUR/USD's fair value is around 1.1150 following the latest US CPI-driven rate changes, causing the pair to remain in a range. Juckes emphasizes that the US economy continues to outperform, and he forecasts an end-of-year EUR/USD target of 1.10. Upcoming US PPI data may garner extra attention after CPI.
The US rates reaction to the CPI data helped establish EUR/USD's fair value near 1.1150, which is close to today's trading level. Although there may be looming issues, the US economy is outperforming other economies at the moment. Juckes maintains that the year-end EUR/USD target of 1.10 is still valid.
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