25 Jun 2014
EUR/USD a visit of 1.3670 not ruled out - Societe Generale
FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale, does not discard a test of 1.3670.
Key Quotes
"EUR/USD is drifting up towards the top of its post-ECB range. This is the third week when the EUR/USD range is smaller than the 1.3503-1.3670 we saw on the day of the ECB move on June 5, but a test of the top end of that range isn't impossible."
"The shooting down of a Ukrainian helicopter will test the ceasefire, and rate cuts in Hungary and Turkey add to the sense that easier monetary policy is more important than FX strength for many EM economies. It's the way of risk set-backs that the sell-off is sharper than the rally and in CEE, the Euro can benefit."
"We are watching EUR/USD but in terms of positioning for any flow of money back into Euros, we prefer a strategic long in EUR/SEK, and a very short-term tactical long in EUR/GBP. Paying 5yr US vs Europe on any further dip in US 5yr rates after the GDP data is attractive too. Trading 'lower for longer' in European rates is hardly sexy but this rend can go on for years."
Key Quotes
"EUR/USD is drifting up towards the top of its post-ECB range. This is the third week when the EUR/USD range is smaller than the 1.3503-1.3670 we saw on the day of the ECB move on June 5, but a test of the top end of that range isn't impossible."
"The shooting down of a Ukrainian helicopter will test the ceasefire, and rate cuts in Hungary and Turkey add to the sense that easier monetary policy is more important than FX strength for many EM economies. It's the way of risk set-backs that the sell-off is sharper than the rally and in CEE, the Euro can benefit."
"We are watching EUR/USD but in terms of positioning for any flow of money back into Euros, we prefer a strategic long in EUR/SEK, and a very short-term tactical long in EUR/GBP. Paying 5yr US vs Europe on any further dip in US 5yr rates after the GDP data is attractive too. Trading 'lower for longer' in European rates is hardly sexy but this rend can go on for years."