EUR/USD: Additional upside into year-end not ruled out – SocGen

EUR/USD is enjoying a decent month of November. Economists at Société Générale analyze the pair’s outlook.

10-year UST/Bund spread pegged back below 200 bps

Near-term direction is likely to depend on the reaction of US bond yields this week to the outcomes of US Consumer Price Index (CPI) and Retail Sales data. 

The narrowing of 10Y UST/Bund below 200 bps and 2y2y US/EU forward spreads are supporting the Euro. 

Bullish seasonality in December is one reason not to rule out additional upside into year-end.