12 Dec 2013
Flash: EUR/USD at highs, ECB playing with fire? - Societe Generale
FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that the Euro reacted neither to this news or the rise in US yields yesterday.
Key Quotes
“For now, we continue to test the top of this year’s EUR/USD range (1.3832). But the Bloomberg summary of 16 banks’ 2014 bond market outlooks saw all of them in different ways bullish of peripheral bonds.”
“Is there ANY good news left to drive spreads even tighter? It is that spread compression which has been driving the Euro. We can stay here for a while longer and even push higher if we break 1.3830, but I think the ECB is playing with fire.”
Key Quotes
“For now, we continue to test the top of this year’s EUR/USD range (1.3832). But the Bloomberg summary of 16 banks’ 2014 bond market outlooks saw all of them in different ways bullish of peripheral bonds.”
“Is there ANY good news left to drive spreads even tighter? It is that spread compression which has been driving the Euro. We can stay here for a while longer and even push higher if we break 1.3830, but I think the ECB is playing with fire.”