EUR/USD: More danger of heading closer to parity, than making a move back above 1.10 – SocGen

Kit Juckes, Chief Global FX Strategist at Société Générale, analyzes EUR/USD outlook.

It takes a genuine surprise to really excite the market

As US data continues to outperform expectations, and the rates market prices in mid-2024 RECN easing with greater conviction, there is still more danger of EUR/USD heading closer to parity, than making a move back above 1.10. 

Expectations for strong US data and weaker figures in Europe, mean that it takes a genuine surprise to really excite the market, but for all that, reminders of economic divergence on sentiment can build up until they reach breaking point for Euro (and other European currency) sentiment.