Flash: Keep implied bid on EUR/USD on strong downward correction - Societe Generale

FXstreet.com (Barcelona) - Sebastien Galy, Senior FX Strategist at Societe Generale comments that EUR/USD, its fair value and USD/JPY dominate client interest as does to some extent Asia and a limited extent Latam FX.

Key Quotes

“Reserves typically accumulate in USD, leading central bank to sell USD on rebalancing activity or simply as the overweight in USD becomes too strong.”

“The outcome is to keep an implied bid for EUR/USD on strong downward correction, in periods of reserve accumulation.”