26 Sep 2013
Flash: EUR/USD is peaking – Societe Generale
FXstreet.com (London) - Sebastien Galy, strategist at Societe Generale said the EUR is peaking.
Key Quotes:
“EUR/USD moved steadily higher overnight on very light trading volumes before fading lower, helped potentially by weak Italian retail sales. Algorithms continue to exploit portfolio inflows into the Eurozone, past their actual peak in momentum”.
“As month ends, portfolio managers are more likely to keep their EUR credit positions rather than add, avoiding the costs of rebalancing while still maintaining a positive exposure. In addition, the relatively subdued reaction of EUR/USD to disappointing US durable goods orders and a misleading Wal-Mart headline also suggests that EUR/USD is priced to perfection. We maintain our short EUR/USD position long front end implied volatility position”.
Key Quotes:
“EUR/USD moved steadily higher overnight on very light trading volumes before fading lower, helped potentially by weak Italian retail sales. Algorithms continue to exploit portfolio inflows into the Eurozone, past their actual peak in momentum”.
“As month ends, portfolio managers are more likely to keep their EUR credit positions rather than add, avoiding the costs of rebalancing while still maintaining a positive exposure. In addition, the relatively subdued reaction of EUR/USD to disappointing US durable goods orders and a misleading Wal-Mart headline also suggests that EUR/USD is priced to perfection. We maintain our short EUR/USD position long front end implied volatility position”.