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EUR/USD falls below 1.12 on widening spreads and stronger USD demand
Societe Generale notes the move leaves EUR well below the ECB's assumed 1.16 path for 2026 to 2028, while euro depreciation complicates the inflation outlook.
Societe Generale strategists cited renewed euro weakness as widening European spreads and stronger US dollar demand pushed EUR/USD below 1.12, according to FXStreet.
The strategists said the level is far from the European Central Bank's technical assumption of 1.16 for 2026 to 2028.
They added that currency depreciation can complicate the inflation outlook and may raise debate within the ECB about uneven policy transmission, with speculative positioning now short euro futures.
FXStreet also flagged ongoing focus on euro-area spreads, as the newsletter context contrasted the EUR move with other major currency moves mentioned in its market notes.
Latest closeEUR/USD 1.126 ▼0.6%