OctaFX | OctaFX Forex Broker
Open trading account

Forex Flash: EUR/USD headed to 1.20 - Societe Generale

FXstreet.com (Barcelona) - Sebastien Galy, Senior FX Strategist at Societe Generale has taken a structural look at the prospects for EUR/USD looking forward and believes that price can move to 1.20.

Starting with the US, he sees that the US economy is and should steadily outperform leading to an outperformance of US assets. UST yields will steepen attracting foreign investors. With regard to Fed QE questions, he looks forward to the change in regime and believes that the balance sheet will show signs of improvement. In terms of the Eurozone, he believes that the ECB will be dragged and forced into action but will stick ever more closely to its inflation mandate. He writes, “The good news is that this we are heading for Japanification so that lower inflation may open the way to some easing.” Further, he sees that OMT is unhelpful and by the time we get there, the house is already burning to the cinder blocks. Hence, the objective is more to scare the wits out of government and force them to save and avoid a deflationary debt spiral.

Forex: GBP/USD eased to 1.5220 on UK sales

The sterling is grinding lower on Thursday after the retail sales in the British economy posted an annual contraction of 0.5% in March, and rose 0.4% on a yearly basis excluding fuel...
Read more Previous

Forex Flash: yesterday´s BoE Minutes show votes remain the same - BBH

Brown Brothers Harriman analysts note that the Bank of England minutes from the April meeting released yesterday show that the vote for extending QE remained the same as the March meeting.
Read more Next
Start livechat