EUR/USD: Long-term trend remains tilted to the upside – SocGen
|The rally in EUR/USD came to a shuddering halt after the dovish market interpretation of the ECB rate decision. Still, economists at Société Générale note that the long-term points to the upside.
Further profit-taking cannot be ruled out
“Tactically, further profit-taking cannot be ruled out.”
“The ECB may try to correct the market’s dovish interpretation of the rate decision and statement last week. This could attract Euro buying but conviction is likely to remain at a low ebb until the CPI release in the US next week.”
“The longer-term trend for EUR/USD remains tilted to the upside thanks to the improved terms of trade, the boost in economic growth in China, narrowing of Fed/ECB policy spread and attractive valuation.”
“Main downside risks are associated with the new military offensive by Russia in Ukraine and escalation with the Western allies/disruption to energy supplies.”
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.