Back
17 Mar 2014
Flash: EUR remains strong - Societe Generale
FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale, underlines the EUR strength of the last weeks.
Key Quotes
"So, to absolutely no-one's surprise, the Crimeans have voted to (re)join Russia, Europe and US have announced they do not accept the referendum as valid, and now we wait to see what sanctions are imposed and how Russia will response. The limited reaction in Euro crosses vs liquid CEE currencies (EUR/PLN, EUR/HUF etc) reflects this wait and see mood while the Rouble has now weakened by over 10% against both USD and EUR this year."
"Only the Argentine Peso has done worse. It is easier to see rates than FX trades from these developments (the ECB will keep rates even lower for even longer and Treasury/OAT or Treasury/Bund spreads will widen even further)."
"At the margin a calmer market is negative for EUR/USD and after 6 consecutive weekly gains, a 7th would be a surprise, though I can't imagine many have appetite to fade the Euro's advance. EUR/NOK and EUR/SEK both have a bias to edge lower."
Key Quotes
"So, to absolutely no-one's surprise, the Crimeans have voted to (re)join Russia, Europe and US have announced they do not accept the referendum as valid, and now we wait to see what sanctions are imposed and how Russia will response. The limited reaction in Euro crosses vs liquid CEE currencies (EUR/PLN, EUR/HUF etc) reflects this wait and see mood while the Rouble has now weakened by over 10% against both USD and EUR this year."
"Only the Argentine Peso has done worse. It is easier to see rates than FX trades from these developments (the ECB will keep rates even lower for even longer and Treasury/OAT or Treasury/Bund spreads will widen even further)."
"At the margin a calmer market is negative for EUR/USD and after 6 consecutive weekly gains, a 7th would be a surprise, though I can't imagine many have appetite to fade the Euro's advance. EUR/NOK and EUR/SEK both have a bias to edge lower."