By eFXdata — Sep 27 - 10:45 AM
Societe Generale Research discusses EUR/USD outlook and sees a scope for further decline on a break of 1.1670.
"In the short run, the Eurozone economic surprise index is falling sharply. That leaves the euro vulnerable to further weakness so that while we watch EUR/USD mess about in a tiny range, a break through May's low just below 1.1670 could trigger an acceleration downwards," SocGen notes.
"The prospect of further weak growth in China (the lasting impact of deflating the real estate sector) hasn't yet had any spillover to the yuan, but slower Chinese growth would be euro-negative even without a move higher in USD/CNY," SocGen adds.
Société Générale Research/Market Commentary