EUR/USD breaks above resistance as Fed hike bets fade – SocGen

Societe Generale strategists note that EUR/USD has squeezed above a key resistance level, supported by broad Dollar weakness. The move follows softer-than-expected US employment figures, which trimmed market expectations for an additional Fed rate increase in September.

The bank’s analysis sees the pair as slightly expensive relative to natural gas prices, but trading near fair value when assessed through the lens of 2-year rate differentials. No specific price targets were mentioned.