This is via the folks at eFX.
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- Societe Generale Research sees a scope for a significant EUR upside over the coming weeks as risk aversion fades away.
- "There's a strong chance that there will be little lasting impact on this side of the Atlantic, but less chance of the US escaping unscathed. That should avoid the narrowing in US/European rate/yield differentials that we have seen in recent days being reversed. And that in turn, suggests that the euro has significant upside as the situation calms down and risk aversion fades away," SocGen notes.
- "So do other European currencies which have not suffered tightening in financial conditions either. Another feature of this episode was that it had far more impact on credit, bond and equity markets than on exchange rates, but once the dust settles, currencies still need to get in line with the changes that have occurred," SocGen notes.
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Its had a good run the past week or so. I had to go to a daily chart to find some sort of resistance for it ... looks like there is some right around here? Technical analysts, please weigh in in the comments!
