17 Dec 2014
Position-liquidation still dominates markets – SG
FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Research at Societe Generale, notes that position-liquidation still dominates the markets with money leaving Russia rather than putting in fresh short positions.
Key Quotes
“Money is leaving Russia rather than short ruble positions being put on. So intervention in a thin market drives the ruble higher temporarily, but the march of money out of the country may just continue.”
“Meanwhile, bears of long-dated government bonds are capitulating (painfully).”
“USD/JPY and EUR/USD have stopped/corrected because large dollar longs have been pared back (but my EUR/USD model is getting bearish. This gets the market to a more balanced position from where the dollar can rally further - though it's worth noting that in AUD/USD at least, there has been no correction, the AUD just keeps falling.”
Key Quotes
“Money is leaving Russia rather than short ruble positions being put on. So intervention in a thin market drives the ruble higher temporarily, but the march of money out of the country may just continue.”
“Meanwhile, bears of long-dated government bonds are capitulating (painfully).”
“USD/JPY and EUR/USD have stopped/corrected because large dollar longs have been pared back (but my EUR/USD model is getting bearish. This gets the market to a more balanced position from where the dollar can rally further - though it's worth noting that in AUD/USD at least, there has been no correction, the AUD just keeps falling.”