Societe Generale on their outlook for the euro, looking ahead to the June European Central Bank meeting.
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SG note the risk of the ECB slowing the EUR recent rise at its June meeting
- "The caveat is, of course, that there really isn't much going on. In practical terms that means we can't trust the euro's move until it's consolidated, and we'd really like it to have only token ECB opposition and support from decent data and rising bond yields"
- "So far, this is a move with weak foundation, even if it suits our view. The wider backdrop is however, still dollar-negative. Its (stretched) valuation is consistent with the fed's stance and the only way that changes is if we seriously think an FOMC vole-face is just around the corner"
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Note, The European Central Bank Governing Council monetary policy meeting in Frankfurt is on 10 June. Press conference follows the announcement.
