EUR/USD: SocGen bank expects robust US growth, recommends going long on USD before Thursday

Forex traders are happy to leave the risk aversion to others as we will be getting the FOMC statement and Q2 growth figures for the USA this week.

"The vision is so blurred that the month-end flows and those related to an advanced pre-position ahead of the FOMC will dominate. The EUR/USD rate spread is in a consolidation range and 2-year rates are rising again as of the two last days, suggesting an increase in the EUR/USD." states the SocGen bank.

"Nobody (us included) expects a lot from tomorrow's FOMC, if not the fact that monetary policy will be dependent on future economic data. So we have to wait for Thursday for a greater impact on the forex (we expect 3.3% of solid growth).

We believe that these next three days offer an opportunity to buy the recent low of the dollar before Thursday and to sell the EUR/USD if we correct even higher." says SocGen.