EUR/USD to rise towards 1.10 on a break past 1.0960 resistance – SocGen
|EUR/USD stalls at 1.0960 hurdle. Economists at Société Générale analyze the pair’s outlook.
December seasonality bullish
Month-end equity portfolio rebalancing flows could renew EUR/USD buying interest this week and guide the pair back above 1.0960 resistance which stands in the way of a rise to 1.10.
Seasonality turns resolutely bullish Euro in December. The average gain of the last 10 years is 1.1%. Based on current spot, this would translate into 1.1050 for EUR/USD by year-end.
The combination of China stimulus (housing/ foreign orders) and lower oil prices are supportive for higher EUR/USD so long as the bear steepening in US yields does not reignite.
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.