9 Apr 2014
No time to fight the risk-friendly trends in FX - Societe Generale
FXStreet (Bali) - Kit Juckes, Global Head of Currency Strategy at Societe Generale.
Key Quotes
"Today's market activity has been extraordinary and smacks of capitulation. Some of the moves (long AUD/NZD) ‘suit' our views."
"Others (the strength of the pound and the yen, in particular) don't. Overall, I don't want to fight he risk-friendly trend as long as US rates are in this range and there aren't other major disturbances out there."
"I prefer owning relatively ‘cheap' currencies (TRY, MXN, NOK, even ZAR) to really expensive ones (NZD, CAD, CNY, RUB); I am happy to bet on rates being lower for longer in Europe and on them going up next year in the US."
"I don't think there is any great science to analysing how tight corporate credit spreads can get, or indeed how tight peripheral European government bond spreads can get, but at the moment, the carry in local market debt is usually more attractive."
Key Quotes
"Today's market activity has been extraordinary and smacks of capitulation. Some of the moves (long AUD/NZD) ‘suit' our views."
"Others (the strength of the pound and the yen, in particular) don't. Overall, I don't want to fight he risk-friendly trend as long as US rates are in this range and there aren't other major disturbances out there."
"I prefer owning relatively ‘cheap' currencies (TRY, MXN, NOK, even ZAR) to really expensive ones (NZD, CAD, CNY, RUB); I am happy to bet on rates being lower for longer in Europe and on them going up next year in the US."
"I don't think there is any great science to analysing how tight corporate credit spreads can get, or indeed how tight peripheral European government bond spreads can get, but at the moment, the carry in local market debt is usually more attractive."