ECB inaction and strong Retail Sales could send EUR/USD back through 1.07 – SocGen
|Kit Juckes, Chief Global FX Strategist at Société Générale, analyzes EUR/USD outlook ahead of the ECB meeting and US Retail Sales.
Short Cable for the ECB?
A 25 bps ECB hike and a clear indication of a pause would risk leaving the Euro in a range, especially if US Retail Sales aren’t strong.
ECB inaction and strong Retail Sales could send EUR/USD back through 1.07 and reverse some of the drop in US yields from Wednesday, giving the Dollar a more pronounced bounce.
Short GBP/USD would appeal even more and if 1.2430 broke, a decent fall could follow. Even someone as untechnical as me can see the significance of the 200-DMA here.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.