After the abysmal March payrolls last Friday, the EUR briefly spiked only to lose all of its gains over the next two several days and then some. And if SocGen is correct, the European currency has much more room to fall. The reasons are not new, recapping what is already widely known, however those wondering why the EURUSD just took out its low stops for the day, the following 4 reasons from SocGen’s Patrick Legland should be a useful refresher why Euro parity may be coming faster than most think.
Reason 1: strong bond outflows set to continue