5 May 2014
Staying long dollars - Societe Generale
FXStreet (Guatemala) - Kit Juckes, Global Head of Currency Strategy at Societe Generale noted that US data outplays in the current climate.
Key Quotes
"What to make of it all? Another drop in the HSBC measure of China's PMI has added to the bid for Treasuries (and for the yen), but it's going to be hard to justify a durable break lower in US rate expectations on the back of the current trend in US data”.
“More likely, a reminder that the ‘everything will be alright' camp has been popular, and as we have observed before, investors are short duration and long dollars. Neither trade is going well, but that doesn't mean the news justifies adding duration or selling dollars, sadly."
Key Quotes
"What to make of it all? Another drop in the HSBC measure of China's PMI has added to the bid for Treasuries (and for the yen), but it's going to be hard to justify a durable break lower in US rate expectations on the back of the current trend in US data”.
“More likely, a reminder that the ‘everything will be alright' camp has been popular, and as we have observed before, investors are short duration and long dollars. Neither trade is going well, but that doesn't mean the news justifies adding duration or selling dollars, sadly."