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3 Aug 2015
EUR/USD and EUR/GBP poised for further decline – Societe Generale
FXStreet (Edinburgh) - Strategist at Societe Generale Kit Juckes sees the euro weakening further vs. the sterling and the dollar.
Key Quotes
“Anything that gets the front end of the curve higher in the US should be negative for EUR/USD”.
“A meander back above 1.10 is possible in the early part of the week, but we’d like to sell against 1.11 and look for a break lower in August”.
“We’d also emphasise the contrast in wage trends in the US and UK ahead of the triple-whammy on Thursday of MPC, Minutes and Inflation Report”.
“The speed of the pick-up in UK wage growth should be noted by the FOMC but even if it isn’t it is likely to result in a couple of MC members voting for an immediate hike”.
“That won’t be a surprise but a hawkish tone to the Minute and to the Inflation Report could see the front end of the UK price in a slightly faster pace of hikes and EUR/GBP drift lower”.
Key Quotes
“Anything that gets the front end of the curve higher in the US should be negative for EUR/USD”.
“A meander back above 1.10 is possible in the early part of the week, but we’d like to sell against 1.11 and look for a break lower in August”.
“We’d also emphasise the contrast in wage trends in the US and UK ahead of the triple-whammy on Thursday of MPC, Minutes and Inflation Report”.
“The speed of the pick-up in UK wage growth should be noted by the FOMC but even if it isn’t it is likely to result in a couple of MC members voting for an immediate hike”.
“That won’t be a surprise but a hawkish tone to the Minute and to the Inflation Report could see the front end of the UK price in a slightly faster pace of hikes and EUR/GBP drift lower”.