EUR/USD: the dollar's rise will resume, traders should sell, targeting 1.03 (Société Générale)

In an analysis released today, Kit Juckes, SG analyst, believes that the dollar rally is not yet finished:

"The US equity rally this week shows that the market believes Trump's tax policies will help companies become more profitable, which has calmed fears that early 2017 will be a remake of early 2016.

In this context, we believe that the rise in the dollar (and real rates) will return.

As a result, we recommend selling EUR/USD towards 1.07, targeting 1.03, with a stop at 1.0950."