4 Mar 2014
Flash: EUR/USD potential for a test of 1.3840 - Societe Generale
FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale, observes the likeliness of the EUR/USD to climb tothe 1.3840 area.
Key Quotes
"The next few days represent a test for the (top end of the) EUR/USD range. With risk aversion fading and Spanish/Italian spreads still edging lower, The Euro's fundamental drivers point to continued strength and a further test of 1.3840."
"Our long-term view -that EUR/USD is close to its highest levels in this cycle but will only fall when markets start to price in near-term Fed rate hikes and will only fall to 1.20 on a 3-5-year time horizon - remains unchanged. We will see where today's bounce takes us, but I suspect it will not be very far."
Key Quotes
"The next few days represent a test for the (top end of the) EUR/USD range. With risk aversion fading and Spanish/Italian spreads still edging lower, The Euro's fundamental drivers point to continued strength and a further test of 1.3840."
"Our long-term view -that EUR/USD is close to its highest levels in this cycle but will only fall when markets start to price in near-term Fed rate hikes and will only fall to 1.20 on a 3-5-year time horizon - remains unchanged. We will see where today's bounce takes us, but I suspect it will not be very far."