Societe Generale maintains a 1.10 year-end target for EUR/USD, noting that while the pair is currently range-bound at 1.1150, US economic outperformance supports a bearish outlook for the euro.
The article notes the US rates reaction to CPI data and that the US economy continues to outperform most others, with a year-end EUR/USD target of 1.10 implying continued dollar strength. The dollar's outperformance is the core message, though the view is a continuation of an established trend rather than a fresh shock.
Societe Generale sees EUR/USD fair value at 1.1150 and keeps a year-end target of 1.10, below current spot near that fair-value level, with the US economy outperforming and PPI data ahead offering scope for further dollar strength. However, the pair is described as range-bound and the fair value is close to spot, limiting the near-term directional push.
Societe Generale reports that EUR/USD fair value sits at 1.1150 following recent US CPI-driven rate adjustments. While the pair remains trapped in a tight range, the firm maintains a year-end target of 1.10, citing continued US economic outperformance. Investors are now shifting focus to upcoming US PPI data to gauge further potential for dollar strength.
Because the US economy continues to outperform most others and the recent US CPI-driven rates move supports the dollar, keeping the EUR/USD year-end target at 1.10.
The bank keeps a year-end EUR/USD target of 1.10, which implies further downside from current levels near 1.1150, but it sees the pair stuck in a range for now.