EUR/USD: Seasonality in October poses another headwind – SocGen

A steady downtrend has led EUR/USD below parity. Economists at Société Générale note that weak seasonals suggest the pair could remain under downside pressure.

Limited upside potential

“A sustained rebound in oil prices after the OPEC+ meeting on Wednesday and strong US payrolls should limit upside for EUR/USD before the US CPI release on 13 October.”

“The bearish seasonality in October could be another headwind. The pair declined in seven of the last ten years in October and by an average of 0.6%.”