Soc Gen says EUR/USD is on its way to 1.25 (by mid year)
A client note via Societe Generale Cross Asset Strategy Research, where they outline their bullish bias for the euro against the US dollar:
targeting a move towards 1.25 by mid-year.
"2018 has started with Asian equities rallying, bond yields low and steady, oil and metals prices well supported and the dollar soggy. Economic data is strong, risk is 'on', investors are looking for yield, and the year won't start until after Friday's December US employment report.
EUR/USD spiked as soon as cross-currency basis strains eased. We expect EUR/USD to reach 1.25 by mid-year but we need the recent helpful move in relative real yields to persist," SocGen argues.