EUR/USD to enjoy further gains if ECB is unanimous delivering a 50 bps hike – SocGen

EUR/USD has seen a breakthrough above 1.10. Will a hawkish ECB add to bullish bid? Economists at Société Générale believe that the pair could extend its rally.

Rally looks technically stretched

“The Euro is pushing on an open door as UST/Bund spreads narrow, and though technicals look stretched, further gains above 1.10 are possible if the ECB is unanimous is delivering a hawkish 50 bps hike.”

“EUR/JPY could be on the cusp of a bullish break out if it can overcome 142.90.”

“EUR/GBP may have another crack at 0.89.”

See – ECB Preview: Forecasts from 14 major banks, another 50 bps hike