21 Jul 2015
USD could extend its upside momentum – Societe Generale
FXStreet (Edinburgh) - Kit Juckes, Strategist at Societe Generale, gave his views on the USD positive momentum.
Key Quotes
“The front end of the US curve is driving the EU/US rate spread, as December 2015 Fed Funds futures, for example, fall to mid-June level and now price a Q4 hike with much more conviction”.
“That this is happening in a news/data vacuum is a bit disconcerting, but with the US equity market now very close to its highs even as rates edge up, we may see a Fed focus now dominate”.
“And with cheaper oil and falling gold prices at the same time, it does all provide a dollar-friendly backdrop”.
“USD/JPY and USD/CAD really ‘ought; to both be moving higher faster than they are. The slow pace reflects stretched valuations”.
Key Quotes
“The front end of the US curve is driving the EU/US rate spread, as December 2015 Fed Funds futures, for example, fall to mid-June level and now price a Q4 hike with much more conviction”.
“That this is happening in a news/data vacuum is a bit disconcerting, but with the US equity market now very close to its highs even as rates edge up, we may see a Fed focus now dominate”.
“And with cheaper oil and falling gold prices at the same time, it does all provide a dollar-friendly backdrop”.
“USD/JPY and USD/CAD really ‘ought; to both be moving higher faster than they are. The slow pace reflects stretched valuations”.