EUR/USD to hit the 1.1910 mark on a hawkish ECB message – SocGen

As the market shifts its attention to the ECB meeting on Thursday, ‘buy the rumour, sell the fact’ is an apt strategy that springs to mind, according to economists at Société Générale. The EUR/USD pair should head higher towards the 1.1910 resistance on a hawkish message from the European Central Bank. 

Risk skewed to the upside if ECB resets 4Q PEPP purchases 

“Discussions are certain to take place, but is there unanimity or consensus to move forwards and rest purchases to EUR10 B - EUR15 B per week from October? If there is not, last week’s price action will turn out to have been a head fake, causing investors to reverse steepening trades in EGBs and swaps and take profits in EUR/USD.”

“A hawkish message could nudge swaps back above zero and EUR/USD closer to the next resistance at 1.1910.”