The underlying trend is for USD weakness to resume – SocGen

The USD upside correction is ending. Economists at Société Générale expect the greenback to weaken again.

The trend has been for the UK and Eurozone to do better than the US

“In relative terms, Europe lagged the US recovery, and the UK lagged the Eurozone, but now, the trend has been for the UK and Eurozone to do better than the US. That’s not reflected in all the data, but it is why the underlying trend has been for the EUR/USD to recover and the EUR/GBP to edge slowly higher.”

“The Dollar may have fallen too fast, and the rate re-think has triggered a recovery. But the underlying trend is for USD weakness to resume.”