10 Aug 2015
Dollar strength remains well and sound – Societe Generale
FXStreet (Edinburgh) - Kit Juckes, Strategist at Societe Generale, reiterates its bullish view on the dollar following recent Non-farm Payrolls in the US economy.
Key Quotes
“Friday’s US labour market report has left the market in stalemate but we remain bullish of the dollar, and like longs in USD/CAD, shorts in NZD/USD and shorts in EUR/GBP”.
“US employment growth slowed slightly, but at 2.1% is robust. Wage growth came in at 2.1% too, though the non-supervisory measure slowed to 1.8%”.
“The unemployment rate stayed at 5.3%, though if you add another decimal place, it’s edging lower”.
“The market reaction was for 2yr yields to rise by about 2bp, while 10yr yields have fallen by 4bp. The 2yr swap rate that drives my baby FX models tried and failed to break 1%and is currently at 99bp”.
Key Quotes
“Friday’s US labour market report has left the market in stalemate but we remain bullish of the dollar, and like longs in USD/CAD, shorts in NZD/USD and shorts in EUR/GBP”.
“US employment growth slowed slightly, but at 2.1% is robust. Wage growth came in at 2.1% too, though the non-supervisory measure slowed to 1.8%”.
“The unemployment rate stayed at 5.3%, though if you add another decimal place, it’s edging lower”.
“The market reaction was for 2yr yields to rise by about 2bp, while 10yr yields have fallen by 4bp. The 2yr swap rate that drives my baby FX models tried and failed to break 1%and is currently at 99bp”.