Better US data needed to push EUR/USD lower – SocGen

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 25, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Kit Juckes, Research Analyst at Societe Generale, notes that the yesterday afternoon’s release of soft US new home sales for January (and a soft Markit services PMI) stopped the dollar’s rally in its tracks somewhat, with EUR/USD crawling back over 1.10 and even GBP/USD finding a modicum of short-term stability.

    Key Quotes

    “A USD 1.5pbl jump in oil prices during the afternoon helped equities and higher-beta currencies. The result is that this morning, despite a 6% fall in the Shanghai composite index, and a small fall back in oil prices, FX markets are pretty quiet for a change.

    The soft US data played a major role in stopping G10FX trends in their tracks. That places a bit more importance on the data in the days ahead and today we see jobless claims (exp 265k) the Kansas Fed index and durable goods orders (exp a bounce across the board, led by aircraft orders, with ex transportation +1.5% vs. -1% last month). If the data are robust, EUR/USD will break back below 1.10 and resume its cautious journey towards 1.08.”
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