EUR/USD: A return to 1.06 is a significant risk, dragging GBP/USD back to 1.25 in the process – SocGen

Kit Juckes, Chief Global FX Strategist at Société Générale, analyzes the EUR outlook following dreadful PMIs.

June’s Euro rally just hit a – PMI – brick wall

EUR/USD has risen from 1.06 to above 1.10 this month and has given back almost half that move in under 24 hours. 

A return to 1.06 is a significant risk, dragging GBP/USD back to 1.25 in the process. 

The only caveat is that the European PMI data aren’t a very useful gauge of what’s happening to the economy, and should be treated with some scepticism, but that’s not going to help on a midsummer Friday with no other major data due.