Societe Generale discusses EUR and GBP tactical outlook and flags a scope for further downside in the near-term.
"At some point talk of a bad Brexit will weigh on the euro, and there are still plenty of euro longs that can get stressed. [We] reckon there's a 60% chance that EUR/USD breaks down through 1.17½ and if that takes us back to 1.15 or so, there's scope for GBP/USD to get itself back in a 1.25-1.30 range for a while," SocGen notes.
"GBP/JPY meanwhile, having broken 140, targets 137.70 and from there, there's plenty of downside danger. Clearing out the shorts does, after all, mean that they can all be put back on again!," SocGen adds.