The US Dollar (USD) has run out of momentum due to more mixed economic data. Economists at Société Générale analyze the forex market outlook.

Sterling is clearly vulnerable

USD/JPY is likely to fall as the BoJ exits negative rates and yield curve control. A symbolic move still matters if it suggests that higher rates will be seen eventually. The Yen is too cheap. 

EUR/USD may be stuck, but GBP/USD could fall as the UK continues to stagnate and the Bank of England finally cuts rates.