29 Apr 2015
Dovish Fed priced in – SG
FXStreet (Barcelona) - Kit Juckes of Societe Generale notes that the overnight price action and the subsequent climb in FX pairs signals that the market’s have been pricing in a potential dovish Fed, with AUD/USD and USD/CAD risking a potential upside spike.
Key Quotes
“The overnight session was a pre-positioning for the FOMC with AUD/USD up to but failing to hold above 0.80, USD/CAD own to but not through 1.20, and USD/JPY failing to get any help at all from another good session in Japanese equities. All of this suggests that a dovish fed is mostly priced in, but if we break these psychological levels in AUD and CAD we'll surly spike. The overall pattern of USD, JPY and EUR all eclipsed by AUD, ZAR, NOK, SEK doesn't looks set to change much.”
Key Quotes
“The overnight session was a pre-positioning for the FOMC with AUD/USD up to but failing to hold above 0.80, USD/CAD own to but not through 1.20, and USD/JPY failing to get any help at all from another good session in Japanese equities. All of this suggests that a dovish fed is mostly priced in, but if we break these psychological levels in AUD and CAD we'll surly spike. The overall pattern of USD, JPY and EUR all eclipsed by AUD, ZAR, NOK, SEK doesn't looks set to change much.”