6 Feb 2014
Flash: USD/JPY to grind higher on US data?- Societe Generale
FXStreet (Barcelona) - Sebastien Galy, Senior FX Strategist at Societe Generale looks into US growth prospects and the impact on USD/JPY and CAD.
Key Quotes:
"The latest releases in the US seem to suggest that the underlying strength of the US economy should continue to peak through the clouds. The Fed's tapering is only the mildest normalisation and as such is on automatics with speed the only question."
"A positive NFP surprise as long as none too extreme would help the market to mean revert with usd/jpy grinding higher. Looking at USD/JPY and UST this process of repricing for such an outcome has started. We haven't yet reached levels in USD/CAD to reload on longs and it remains with USD/JPY the more vulnerable currency in G10 to a negative surprise."
Key Quotes:
"The latest releases in the US seem to suggest that the underlying strength of the US economy should continue to peak through the clouds. The Fed's tapering is only the mildest normalisation and as such is on automatics with speed the only question."
"A positive NFP surprise as long as none too extreme would help the market to mean revert with usd/jpy grinding higher. Looking at USD/JPY and UST this process of repricing for such an outcome has started. We haven't yet reached levels in USD/CAD to reload on longs and it remains with USD/JPY the more vulnerable currency in G10 to a negative surprise."