Societe Generale discusses its outlook for EUR/USD for the coming year.
"Relative real rates started to turn less negative for the EUR/USD in 2019, but the Fed has accelerated that development with its dramatic policy moves this year," SocGen notes.
"That should take EUR/USD into a 1.20-1.30 range during 2021,
and eventually to a 1.25-1.35 range centred on where we see fair value
- though fair value for EUR/USD will be predicated on the dollar losing
ground against a lot more currencies than just the euro, and may have
to wait for a broad-based rally in EMFX, which isn't something we see
happening just yet," SocGen adds.
Here are the latest SocGen FX forecasts, note the escalation in cable as well: