Societe Generale Cross Asset Strategy Research remains convinced that if the European economic recovery continues, and the ECB pushes ahead with policy normalisation, we will see EUR/USD trade above 1.30 within 18 months or so.
"As for the near term, we’ve just about given up hope of finding better (cheaper) levels to buy EUR/USD, but that may just mean 1.17-1.21 becomes a bit of a range for now," SocGen argues.
Meanwhile, SocGen thinks that long GBP/USD around current levels looks attractive to express a USD bearish bias.
"If you think the Brexit mood is so negative that things can’t get worse, and if you think that the dollar’s had and squandered its chance of a major correction against the euro, then GBP/USD longs can appeal at current spot levels," SocGen adds.
Source: Societe Generale Cross Asset ResearchOriginal Article
