EUR/USD: Unlikely to hold above 0.95 – SocGen
|EUR/USD has turned south and declined below 0.9700. In the opinion of Kit Juckes, Chief Global FX Strategist at Société Générale, the pair is set to post a new cycle low.
Inflation problem and economic threat from Russia to weigh on the EUR
“A new cycle low in EUR/USD seems certain, and 0.95 is unlikely to hold.”
“The early signs from the Laender suggest the risk is of an overshoot to the consensus for German CPI inflation, which looks for a rise from 7.9% to 9.5%. Meanwhile, the leading German Institutes forecast a 0.4% fall in GDP next year, which is slightly below the -0.2% consensus figure.”
“The rates market will price in further ECB hikes and ECB representatives will talk tough, but a growing inflation problem at the same time as the economic threat from Russia, will weigh on the euro.”
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.