EUR/USD: A correction is a risk – SocGen

EUR/USD has stabilised above the 1.09 mark. Kit Juckes, Chief Global FX Strategist at Société Générale, analyzes the pair’s outlook.

CFTC data suggests the speculative market is long Euros
EUR/USD has risen fast enough in recent days for RSIs to be overbought and the same is true of the Euro Stoxx index.

A correction is a risk and at the very least, a period of EUR/USD consolidation is likely, while economic data aren’t that good, and the CFTC data suggests the speculative market is long Euros.

Short-term, I’d rather own GBP than EUR, on positioning, and even on talk of ill-advised tax cuts which could nevertheless delay rate cuts.