Societe Generale likes buying EUR/USD and AUD/USD on further dips over the coming days.
Equities are a bit softer, bond yields have drifted a bit lower and the dollar is, on the whole, a little stronger...This ought to be enough to cap EUR/USD here and yet not completely sure it will. The bounce from 1.16 has happened despite rates/yields moving against the euro, and has come in the face of stale longs that could (should?) have been squeezed further. It all suggests we should get a better level to go long EUR/USD between now and Nov3, and yet that should already have happened," SocGen notes.
"We'd still like to get long AUD/USD close to 0.70, with a tight stop, for a medium/long-term trade and hope the next day or two will throw up an opportunity," SocGen adds.