EUR/USD down 13 pips to 1.2113 today
Societe Generale Research discusses EUR/USD outlook and flags a scope for a new cycle high for the pair over the coming weeks.
"As for the euro, the key may still lie in Bund yields. We are less concerned about the treasury/Bund yield difference here, than the Bund yield itself. If that is rising, reflecting improving economic confidence on this side of the Atlantic too, then the euro uptrend should persist," SocGen notes.
"EUR/USD 1.2050 looks like important support now, and if that holds we're on track for new cycle highs," SocGen adds.
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