EUR Likely To Fall As Selling Pressure Looms: SocGen

Societe Generale’s latest hedge fund monitor sees some troubling signs for the euro ahead, the report expects selling pressure to return to euro soon as monetary policy in U.S. and Europe takes decidedly different course . Currently hedge funds are net buyers of euro against the dollar. However as ECB remains dovish and has reiterated its dovish stance and the Fed is saying goodbye to its zero rate policy, the divergence between USD and EUR curves will become wider, as one strengthens and the other weakens. SocGen sees EUR lowering to $1.25 by end of 2013. Analysts on Societe Generale’s…