Societe Generale made some prediction concerning EUR/USD based on fundamental analysis:
- "The overall picture is sufficiently blurred that month-end flows and pre-FOMC position-squaring will probably dominate. The 10-year EU/US yield spread is range-bound and the 2-year rate spread is back up over the last couple of days, both very consistent with the EUR/USD bounce, and doing absolutely nothing to suggest the range will break without new developments."
- "No-one (us included) expects much from the FOMC statement other than affirming data-dependence, so we’ll have to wait for the GDP data (expect a strong 3.3% growth rate)."
- "The overall pattern of the news in the next three days supports the idea of buying the dollar correction and selling EUR/USD if it pushes any higher."