25 Nov 2013
Flash: Risk on, Yen down – Societe Gnerale
FXstreet.com (London) - Kit Juckes at Societe Generale explains that risk is on, hence a lower Yen.
Key Quotes:
“The deal agreed to lift some sanctions on Iran has cut oil prices by USD 1.5p/b this morning, with a mixed commodity picture otherwise, though gold prices are lower. Equity markets are higher, with the Nikkei gaining 1.5%”.
“There hasn't been much of a bond market reaction, the focus being on tapering, negative deposit rates and economic data”.
“The FX market has seen the yen weaken and commodity/energy-sensitive currencies fall. AUD is down vs USD and NZD”.
“AUD and CAD are both going to remain vulnerable, with ugly technical pictures matched by commodity price sensitivity and in the cause of the AUD, a central bank that is probably quietly cheering. AUD/USD now targets the August low at 0.8930, while I expect USD/CAD to break 1.06. But I'm surprised the FX market hasn't yet differentiated more between winners and losers from this deal”.
Key Quotes:
“The deal agreed to lift some sanctions on Iran has cut oil prices by USD 1.5p/b this morning, with a mixed commodity picture otherwise, though gold prices are lower. Equity markets are higher, with the Nikkei gaining 1.5%”.
“There hasn't been much of a bond market reaction, the focus being on tapering, negative deposit rates and economic data”.
“The FX market has seen the yen weaken and commodity/energy-sensitive currencies fall. AUD is down vs USD and NZD”.
“AUD and CAD are both going to remain vulnerable, with ugly technical pictures matched by commodity price sensitivity and in the cause of the AUD, a central bank that is probably quietly cheering. AUD/USD now targets the August low at 0.8930, while I expect USD/CAD to break 1.06. But I'm surprised the FX market hasn't yet differentiated more between winners and losers from this deal”.