EUR/USD: Societe Generale says euro could rapidly fall down towards 1.08

Societe Generale believes that the EUR/USD remains vulnerable on the forex and could quickly fall towards 1.08.

"The EUR/USD fell rapidly to 1.10 after breaking support at 1.1130. This could be more of a psychological than technical support level, but the break could pave the way for a move towards 1.08, which would look like a significant movement in the context of the recent range.

Relative rates in real or nominal terms, do not really offer much support for significant weakness of the euro, and while this will not prevent a fall to 1.08, a more fundamental event will need to arise to justify a break of this threshold."