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16 Apr 2014
Risk appetite prevailing amongst traders - Societe Generale
FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale, observed that calmer Treasuries and decent US earnings reports extended the risk-on trade.
Key Quotes
"Overnight, decent US earnings and a return of calm in the Treasury market have helped support a risk-friendly mood across markets. IN rates, that leaves me liking 2-10s flatteners, and in Europe, it leaves me liking 5-30s steepeners."
"In EMFX, the BIS updated their REERs (BISB... on Bloomberg) and a quick glance confirms that CNY still looks stretched and TRY still looks cheap on a 5 or a 10 year view. Benoit likes longs in MYR, vs KRW."
"In G10 FX the risk friendly world translates into a further modest rally for the Australian dollar, a slight bounce in EUR/USD, and a break back above 102 in USD/JPY. Overnight data saw the expected slowdown in Chinese GDP, but 7.4% growth was better than expected."
"Fixed investment also slowed, to 17.6% y/y, slowest rate in a decade. New Zealand inflation fell to 1.5% in Q1 from 1.6%."
"Now the focus switches to UK unemployment and wage data, US housing starts and industrial production, and a chorus of Fed Governors.we also get a Bank of Canada policy decision, which probably leaes rates on hold but may see a dovish bias at the press conference."
Key Quotes
"Overnight, decent US earnings and a return of calm in the Treasury market have helped support a risk-friendly mood across markets. IN rates, that leaves me liking 2-10s flatteners, and in Europe, it leaves me liking 5-30s steepeners."
"In EMFX, the BIS updated their REERs (BISB... on Bloomberg) and a quick glance confirms that CNY still looks stretched and TRY still looks cheap on a 5 or a 10 year view. Benoit likes longs in MYR, vs KRW."
"In G10 FX the risk friendly world translates into a further modest rally for the Australian dollar, a slight bounce in EUR/USD, and a break back above 102 in USD/JPY. Overnight data saw the expected slowdown in Chinese GDP, but 7.4% growth was better than expected."
"Fixed investment also slowed, to 17.6% y/y, slowest rate in a decade. New Zealand inflation fell to 1.5% in Q1 from 1.6%."
"Now the focus switches to UK unemployment and wage data, US housing starts and industrial production, and a chorus of Fed Governors.we also get a Bank of Canada policy decision, which probably leaes rates on hold but may see a dovish bias at the press conference."