SocGen on the euro
Societe Generale Cross Asset Strategy Research starts the new year with a bullish bias on EUR/USD targeting a move towards 1.25 by mid-year.
"2018 has started with Asian equities rallying, bond yields low and steady, oil and metals prices well supported and the dollar soggy. Economic data is strong, risk is 'on', investors are looking for yield, and the year won't start until after Friday's December US employment report.
EUR/USD spiked as soon as cross-currency basis strains eased. We expect EUR/USD to reach 1.25 by mid-year but we need the recent helpful move in relative real yields to persist," SocGen argues.
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