EUR/USD to recover to 1.1650 and then consolidate – Societe Generale

Societe Generale’s Head of FX and Money market sales in Tokyo, Kyosuke Suzuki, offers his view on the EUR/USD pair following yesterday’s European Central Bank (ECB) monetary policy outcome.

Key Quotes:

ECB's pledge to keep rates low through the summer of 2019 was the biggest surprise of the outcome yesterday.

Support for EUR/USD is seen around 1.1500.

USD strength helped to magnify EUR selling but the latter is expected to eventually be underpinned by ECB's direction towards an exit.

EUR/USD may recover to 1.1650 and then consolidate.