Central banks: Moving on to the new normal normalisation - SocGen

Kit Juckes, Research Analyst at Societe Generale, suggests that there will be some final French election twists and turns but markets are looking ahead to a gentle upward path for US rates, the early stages of policy normalisation by the ECB, and to the BOJ keeping its yield target in place.

Key Quotes

“That doesn’t suggest there are demons facing higher-yielding currencies and risk assets. Nor does it alter a view that the yen can weaken further if we’re still (just about) in a rising yield environment globally. But it does continue to suggest both that the dollar has peaked in trade-weighted terms, and that the euro has the greatest upside of the G3 currencies.”