9 Dec 2013
Flash: Is tapering now completely priced in? - Societe Generale
FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that there was no follow-through to US bond market weakness on Friday after the (strong) payroll data.
Key Quotes
“With Chinese trade data coming out stronger than expected as well this morning, the net result is higher equities sin Asia and a more positive feel-in the very short term–to high-beta currencies. “
“The way the rand bounced is typical of the general pattern – just as 30yr US yields backed off a test of the year’s highs, so the rand rallied on what started as short-covering.”
“In AUD/USD, a key day reversal completed a refusal to break below 0.90, and bears will be wary for a while. All of this begs the question of whether ‘tapering’ is now completely priced in? And if it is, might the dollar slip a little further? “
Key Quotes
“With Chinese trade data coming out stronger than expected as well this morning, the net result is higher equities sin Asia and a more positive feel-in the very short term–to high-beta currencies. “
“The way the rand bounced is typical of the general pattern – just as 30yr US yields backed off a test of the year’s highs, so the rand rallied on what started as short-covering.”
“In AUD/USD, a key day reversal completed a refusal to break below 0.90, and bears will be wary for a while. All of this begs the question of whether ‘tapering’ is now completely priced in? And if it is, might the dollar slip a little further? “