EUR/USD: A return towards 1.05 cannot be ruled out – SocGen

EUR/USD is offered for fourth day. Economists at Société Générale believe that a move downward to the 1.05 mark is on the cards.

Dollar is unlikely to be sold aggressively

“We remain of the view that the Dollar is expensive longer term but tactically the bounce in February could have further to run if incoming data backs Fed tightening beyond May.”

“PCE inflation tomorrow and the next jobs and CPI prints in March fall before the next FOMC meeting and will decide if the last macro forecasts and dot plot will be revised. Until then, the Dollar is unlikely to be sold aggressively and a return of EUR/USD towards 1.05 cannot be ruled out.”