New forecasts from Societe General
Societe Generale Research updated its FX forecasts and now targets EUR/USD and USD/JPY at 1.18 and 105 respectively by end-2020 and at 1.25 and 100 by end-2021.
"Our updated forecasts reflect our concern that EUR/USD in
particular, has gone too far too fast, but it seems clear to us that we
are at the start of a multi-year period of dollar decline, from very
elevated levels," SocGen notes.
"The yen still can't fall far
and is doing its job: ready to rally if global equities correct, doing
little while they go up...A sterling short squeeze has dragged EUR/GBP
below 0.90 but we doubt it can hold here for long, even if the outlook
is still for the real trade-weighted index to bump along the bottom,"
SocGen adds.
