By eFXdata — Sep 22 - 10:00 AM
Societe Generale Research discusses its bias on EUR/USD and GBP/USD in the near-term.
"We are entering the last stage of the dollar rally, but that doesn’t rule out the risk that this stage is volatile, and dramatic...The size of fiscal and balance of payments deficits, the mix of slowing growth and tight labour market, all paint a bleak picture and only the fact that sterling bulls are almost completely extinct as a species can offer support," SocGen notes.
"For sterling and euro, the scale of the fall from here might not be THAT big, but there is more weakness ahead, all the same. GBP/USD 1.10 and EUR/USD 0.95 are the next major levels for crowded shorts to take a pot-shot at," SocGen adds.
Société Générale Research/Market Commentary