Societe Generale Research sees a limited scope for EUR/USD downside in the near-term, and highlights the importance of the 137.50 level in USD/JPY.

 

"We think EUR/USD is finding a base here, partly because the US rates market has priced a lot in now, and partly because the European rates market has more to price in,"SocGen notes. 

 

"The USD/JPY 200-day average is at 137.70 and if that were to break, it would trigger a spike down for the yen, at least temporarily," SocGen adds.