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EUR/USD seen at 1.2000 in Dec 2018 – Societe Generale

2018-9-4 13:53:21Trading Strategies
EUR/USD seen at 1.2000 in Dec 2018 – Societe Generale

Analysts at Societe Generale call for a stronger Euro in the coming months amid a strengthening Eurozone economic recovery while the US dollar is expected to weaken due to deteriorating US fiscal and external balances.

Key Quotes:

“Cautious optimism on Euro area economy - but Italy remains a wildcard. 

Improving wage data in the euro area

ECB's confidence in the convergence of inflation towards its medium-term objective

Negative economic surprises in Europe have stopped deepening since late spring

Economic growth in 2018 risks being lower than generally projected at the beginning of the year, but probably not much below the ECB forecast of 1.9%

Recent easing in trade tensions with the US could support economic sentiment

But Italian uncertainties remain a wildcard for the cautiously optimistic outlook for the euro area economy