EUR/USD: Life is difficult for Euro bulls – SocGen

Economists at Société Générale discuss EUR outlook. In their view, risks for the shared currency are tilted to the downside. 

Key support below 1.0500 at 1.0450

“EUR/USD support at 1.0450 if 1.05 gives way.”

“March seasonals are bearish.”

“European stocks and spreads have outperformed the US since the start of the year and a reconvergence would undermine the bullish EUR/USD view.”

“Euro flash CPI for February is due this week and could cause more pain for bonds but also for EUR/USD if the data surprises to the upside.”