- Economic pessimism threatens the Euro – SocGen
Market news
25 August 2023
Economic pessimism threatens the Euro – SocGen
US growth optimism is driving the Dollar higher. Therefore, Kit Juckes, Chief Global FX Strategist at Société Générale, expects EUR/USD and GBP/USD to remain vulnerable.
Euro and Sterling are hostage to economic data
I’m not going to pretend there has been a fantastic correlation between growth expectations and EUR/USD moves in the last year, but the relative shift this month is big enough to threaten a fall to EUR/USD 1.05 in the coming weeks.
As for EUR/GBP, the strong short-covering we saw in the first half of this year came from a correction to over-pessimistic growth expectations, but that support has gone now. Sterling too, is vulnerable against the Dollar here.
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