Societe Generale sees strong support for euro at 1.08

Currency strategists at Societe Generale believe that the fall of the EUR/USD may be limited at 1.0800 zone for a while. They say they still prefer to buy the dollar against the yen and the euro.
According to them EUR/USD seems likely to move down to 1.0800, but they are still concerned that the weakness of the euro depends on the ECB and active private investors in the European bond market.
They believe that reducing the volume of purchases of bonds can cause rebound of the euro, but in a broader sense, the weaker currency is one of the main channels through which worked ECB policy.
But if the euro is now located in a range of trade and the ECB almost has no response instruments, we can see difficulties in trying to find a new catalyst for another significant decrease of the euro, experts say.