EUR/USD and GBP/USD bounces to run out of steam – SocGen

Sentiment and prices shifted palpably against the Dollar in the first two weeks of November. Kit Juckes, Chief Global FX Strategist at Société Générale, analyzes FX market outlook for the week ahead.

SEK and NOK come back into favour

We have a quiet week ahead for economic data and with Thanksgiving potentially a distraction for some, there isn’t a lot to challenge the market’s view that a US soft landing is coming. 

European PMI data on Friday could be a reminder that growth on this side of the Atlantic isn’t anything to write home about, but US PMIs will be ignored in favour of waiting for ISM a week later (and then NFP a week after that, followed by CPI and the FOMC). 

Maybe it all adds up to the EUR/USD and GBP/USD bounces running out of steam at some point, while JPY, AUD and NZD carry on for longer and SEK and NOK come back into favour. Both of those two can drift higher against CHF in this ‘soft landing’ world.