26 Nov 2013
Flash: Looking for more yen weakness – Societe Generale
FXstreet.com (London) - Kit Juckes, head of currency strategy at Societe Generale is looking for the next leg in Yen weakness.
Key Quotes:
“It would have been nice if yen weakness had continued unabated, but with yen shorts on the CFTC at their highest levels since 2007, we can't expect a straight line move”.
“It's not comfortable being keen on a consensual trade, but as we trundle towards tapering in the US, and as we get closer to a really clear divergence in BOJ/Fed balance sheet trends, I remain convinced we are now preparing for the next leg in yen weakness”.
Key Quotes:
“It would have been nice if yen weakness had continued unabated, but with yen shorts on the CFTC at their highest levels since 2007, we can't expect a straight line move”.
“It's not comfortable being keen on a consensual trade, but as we trundle towards tapering in the US, and as we get closer to a really clear divergence in BOJ/Fed balance sheet trends, I remain convinced we are now preparing for the next leg in yen weakness”.