EUR/USD to inch gradually higher on robust Eurozone data – SocGen

Kit Juckes, Chief Global FX Strategist at Société Générale, expects the EUR/USD pair to advance nicely.

EUR/USD will fall a bit on a knee-jerk reaction to 25 bps move 

“EUR/USD will fall a bit on a knee-jerk reaction to 25 bps move today but it’s basically a coin-toss between a ’hawkish 25’ and a ‘dovish 50’.”

“It’s what the market thinks happens next that really matters. And that depends on the data. So far, we’ve seen some softness in recent European figures (PMI revisions and German trade, today) and that’s stalling Euro gains.”

“We don’t think the Eurozone has the same issues as the US and data should reflect that in the coming weeks, dragging EUR/USD slowly higher.”