USD: This Month’s Reversal Associated With CNY?; EUR/USD: Struggle To Convince Despite Gains – SocGen

Here is their view, courtesy of eFXdata:

Societe Generale Cross Asset Strategy Research discusses the G10FX market conditions and thinks that a ‘softly-softly’ Fed is not going to do much for the USD outlook but it is doing wonders for risk sentiment.

“That helps offset some of the concerns about trade disputes (notably with China), though it doesn’t offset Brexit concerns in the UK, budget concerns in Europe, or the still-unresolved problems in Turkey.

It’s also worth noting that the reversal in the dollar this month in the wake of USD/CNY being restrained under 6.90. Is the tail wagging the dog? EUR/USD is threatening to break higher, but still struggles to convince,” SocGen argues.

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