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20 Sep 2014
What now? - Societe Generale
FXStreet (Guatemala) - Kit Juckes, Global Head of Currency Strategy at Societe Generale noted that the Scots have voted to remain in the United Kingdom, removing a major threat for the UK economy and sterling and looks ahead to what’s next?
Key Quotes:
" FX markets can re-focus on monetary policy divergence and as the Federal Reserve marches towards the exit from QE and ZIRP, the dollar will rally "
"For now, the response in equity, credit and emerging markets is far more sanguine than during 2013's ‘Taper Tantrum' but USD will make gains across G10 FX. GBP/USD is a strategic sell, USD/JPY is targeting 110.50 next."
"EUR/USD positioning is still heavily short but a disappointing TLTRO take up maintains pressure on the ECB to ‘do more' (even if all they can really do is engineer a weaker currency). NZD is vulnerable to election news this weekend remains a short vs USD along with AUD. And after last weekend's Swedish elections, we remain bullish of USD/SEK and NOK/SEK."
Key Quotes:
" FX markets can re-focus on monetary policy divergence and as the Federal Reserve marches towards the exit from QE and ZIRP, the dollar will rally "
"For now, the response in equity, credit and emerging markets is far more sanguine than during 2013's ‘Taper Tantrum' but USD will make gains across G10 FX. GBP/USD is a strategic sell, USD/JPY is targeting 110.50 next."
"EUR/USD positioning is still heavily short but a disappointing TLTRO take up maintains pressure on the ECB to ‘do more' (even if all they can really do is engineer a weaker currency). NZD is vulnerable to election news this weekend remains a short vs USD along with AUD. And after last weekend's Swedish elections, we remain bullish of USD/SEK and NOK/SEK."