eFX report on EUR/USD analysis from Soc Gen:

"Fundamental market drivers haven't changed, but positions were crowded.

  • If we can now reduce excess dollar shorts, then we're setting the stage for a few more very messy days before underlying trends reassert themselves.
  • Our Q1 EUR/USD forecast (1.20) no longer looks outdated, and we hope that level will provide a base for this move

The key issues going on from here may be

  • 1) can the ECB successfully talk the euro down, and
  • 2) does relative growth mater in FX (not just in EUR/USD)"

For bank trade ideas, check out eFX Plus

It took me a couple of reads to makes sense of this.