12 Feb 2014
Flash: Yellen gives us a weaker dollar longer term - Societe Generale
FXStreet (Guatemala) - Kit Juckes, Global Head of Currency Strategy at Societe Generale said Janet Yellen has done a good job of calming market nerves and reviving risk appetite.
Key Quotes:
"The Fed will continue to taper, but she stressed that the fall in the unemployment rate includes a lot of people working part time who would rather work full time, overstating the health of the labour market."
"Tapering continues but rate hikes are as far away as ever. So far, that's a recipe for range-bound Treasuries, stronger equities, tighter credit spreads, a weaker dollar (though not against the euro, winged this morning but further talk of negative deposit rates) and stronger EMFX."
"However, I don't want to simply extrapolate the recovery in risk appetite at a time when US market rates are at the bottom end of their range. I'll want to see what happens when they get back to the top. And in the meantime, I'll sell 10yr Notes, please..."
Key Quotes:
"The Fed will continue to taper, but she stressed that the fall in the unemployment rate includes a lot of people working part time who would rather work full time, overstating the health of the labour market."
"Tapering continues but rate hikes are as far away as ever. So far, that's a recipe for range-bound Treasuries, stronger equities, tighter credit spreads, a weaker dollar (though not against the euro, winged this morning but further talk of negative deposit rates) and stronger EMFX."
"However, I don't want to simply extrapolate the recovery in risk appetite at a time when US market rates are at the bottom end of their range. I'll want to see what happens when they get back to the top. And in the meantime, I'll sell 10yr Notes, please..."