EUR/USD is moving sideways at around 0.9700. In the view of economists at Société Générale, there is no relief for the shared currency, with the pair at risk of retesting the September low.

Bearish seasonality in October cannot be overlooked

“The bias for EUR/USD is defensive ahead of US CPI on Thursday and Retail Sales on Friday.”

“A return towards the September low is not ruled out based on growth and policy rate differentials between the US and the euro area and the escalation of the conflict in Ukraine.”

“The bearish seasonality in October cannot be overlooked.”

“0.9500 is near-term support.”