Societe Generale Research discusses EUR/USD outlook and notes that going short around current levels doesn't look to provide compelling risk-reward in the near-term.
"The immediate threat comes from the German Q4 GDP release tomorrow, but the problem runs deeper than that. Its main defence is valuation: In real terms, the euro is at levels seen in early 2017 and 2000-2001," SocGen notes.
"That makes shorting EUR/USD hard, but it doesn’t prevent us from thinking it can fall against the yen (now) and NOK. (later)," SocGen adds.