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28 Feb 2014
Flash: EUR/USD back above 1.37- Societe Generale
FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale, observed the EUR/USD recovered the 1.3700 handle.
Key Quotes
"Rates are in ranges, vol is falling, equities are rallying and investors are looking for what a wise client calls low-vol safe harbours. But is this consistent with the idea that we are moving from a zero rate, zero vol world to a low rate low vol world, via a series of bumpy adjustments? For now., I suppose this doesn't matter much since eco-data is becalmed and we are hearing nothing new about the US (slower, either because it's slower or because its winter) or Europe (growing, but painfully slowly)."
"That provides the conditions for range-bound bonds and the rest (falling vol, rising equities, soggy dollar) all follow. All of this discussed in the weekly yesterday and set the stage for EUR/USD to be back above 1.37 and GBP/USD to charge back towards 1.68 this morning."
Key Quotes
"Rates are in ranges, vol is falling, equities are rallying and investors are looking for what a wise client calls low-vol safe harbours. But is this consistent with the idea that we are moving from a zero rate, zero vol world to a low rate low vol world, via a series of bumpy adjustments? For now., I suppose this doesn't matter much since eco-data is becalmed and we are hearing nothing new about the US (slower, either because it's slower or because its winter) or Europe (growing, but painfully slowly)."
"That provides the conditions for range-bound bonds and the rest (falling vol, rising equities, soggy dollar) all follow. All of this discussed in the weekly yesterday and set the stage for EUR/USD to be back above 1.37 and GBP/USD to charge back towards 1.68 this morning."