Flash: Dollar up, European rates anchored - Societe Generale

FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that the reluctance to re-embrace fully, the idea of ‘much lower for much longer’ US rates, is helping turn the dollar’s trend upwards.

Key Quotes

“USD/JPY can reach 105 in the next few weeks if it closes above 100 today. EUR/USD needs to hold below 1.35, but we may see 1.30 by the end of the year.”

“We are still short EUR/GBP, and long NOK/SEK too. Meanwhile, I still want to receive Euros and pay in sterling, buy Bunds and sell Gilts, and today, I’d like to pay GBP 1yr rates 5yrs forwards and receive them in dollars.”

ECB's Asmussen calls for setting bank backstops before asset quality review is concluded

ECB Governing Board member Joerg Asmussen urged EU national governments on Friday to consider putting in place backstops for banks before the asset quality reviews are conducted, in case the financial institutions prove to need more capital.
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EUR/CHF poised just below weekly high

Having posted a weekly high at 1.2351 this morning, EUR/CHF has gently pulled back to where it is currently trading at 1.2347, up 0.15% on the days trading.
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