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Nov 05 - 10:55 AM

USD: Whether GBP/USD Holds 1.34 Remains A Function Of Whether EUR/USD Holds Above 1.15 - SocGen

By eFXdata  —  Nov 05 - 09:00 AM
Societe Generale Research discusses its tactical bias on the price action of EUR/USD and GBP/USD. 
 
The ECB’s position was reflected in a swift repricing of rate expectations this week. That keeps the euro under modest pressure and while the current EUR/USD range is holding, it still feels as though a break below 1.15 is just a matter of time, and a question of what will be the catalyst for it to happen," SocGen notes. 
 
"That matters for sterling. BOE messaging has been unhelpful but the bottom line is that sterling has been bought on the back of rate expectations and despite a deteriorating economic outlook. That’s a flaky foundation for a currency to rally on, and so it proved. Whether GBP/USD holds 1.34 and remains in this year’s range, depends entirely on whether EUR/USD holds above 1.15.  very much doubt it," SocGem adds. 
Source:
Société Générale Research/Market Commentary

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