Societe Generale Research discusses its tactical view on EUR/USD, and EUR/GBP.
"The lessening of US/Mexican tension clearly helps the mood somewhat, and obviously helps the peso, but the US/Chinese trade conflict has much wider implications. This morning's Chinese reserve data suggest they are letting the currency do its own thing, and while the debate about whether USD/CNY follows the FX trend or sets it rages, we doubt we can see a sustained turn in the dollar while uncertainty about Chinese FX policy persists. Or, to be simplistic about it, we don't think EUR/USD is going to make a major move higher while USD/CNH is edging steadily higher," SocGen notes.
"CFTC data suggest that the speculative market was (as of last Tuesday) adding to GBP shorts and trimming EUR shorts. Sounds like they have been buying EUR/GBP," SocGen adds.