EUR/USD: The pair is cheap, but should pursue its decline towards parity between now and May (Societe Generale bank)

In a note published today, Société Générale believes that the euro is currently not very expensive, but discourages any purchase ahead of France's presidential elections in May.

"We expect the EUR/USD to fall to parity between now and May 7th.

However, the recent EUR/USD decline is based on a widening of the interest rate differential between Europe and the US, and although this spread can still increase, the margin seems to be reduced."