Year-end short covering to support EUR – SocGen | Forexlive

Societe Generale Research likes long EUR/USD into year-end targeting 1.10 with a stop at 1.0190.

“Year-end short covering and market bias to be upbeat about
2023 should help the euro. There has been a series of positive euro
performances in December in recent years, followed by a correction in
January. That partly reflects euro shorts being covered and
partly optimism that the European economic outlook is going to improve,”
SocGen notes.

“But EUR/USD is 14% below its long-term average and 8% below its
average since the January 2015 move to negative rates. There is a lot of
bad news embedded in current prices,” SocGen adds.

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