Societe Generale Research discusses EUR/USD outlook and maintains a tactical neutral bias but still sees a scope for a move higher towards 1.15 on the next week or two.
"For EUR/USD, what we seem to be seeing are the first signs of short-covering, but also some bargain-hunting buyers. Citi's economic surprises index for the
Eurozone has moved above the US one for the first time last summer and there's even some talk of green shoots on this side of the Atlantic," SocGen notes.
"That's helped EUR/USD off the floor of its range but it needs to break higher to encourage more buyers, and indeed, if it doesn't make upward progress, the danger is that it sinks back as tentative buyers lose their nerve. We're more hopeful than confident of a move through 1.1350 and on towards 1.15 in the next week or two" SocGen adds.