EUR/USD must hold the early October low of 1.0448 to avert a deeper drop – SocGen

Market news

16 October 2023

EUR/USD must hold the early October low of 1.0448 to avert a deeper drop – SocGen

EUR/USD dropped back below 1.05 on Friday. Economists at Société Générale analyze the pair’s outlook for the week ahead.

Euro long positions held by asset managers stabilise after run of eight straight weeks of decline

The single currency must hold the early October low of 1.0448 to avert a deeper drop.

The encouraging news for Euro bulls is that positions have stabilised among hedge funds and asset managers after two months of readjustment in favour of the Dollar.

Geopolitics, Oil prices and demand for Dollar liquidity should keep a lid on Euro gains in the near term unless US data takes a turn for the worse. Eurozone data is mostly second tier this week and secondary to the US releases, Fed speak and the crisis in the Middle East.

EUR/USD Price Analysis: Immediately to the upside comes 1.0640

The longer the Israeli-Hamas conflict goes on, the greater the potential for Oil market disruptions – NBF

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