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21 May 2014
EUR/GBP downside expected - Societe Generale
FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale, expects the EUR/GBP to grind lower in the coming periods.
Key Quotes
"Our long-term bearish GBP/USD view is intact, but tactically, further downside in EUR/GBP between now and June 6 seems a good bet. There's a dearth of news in Europe, but the Euro's upside looks capped ahead of the ECB meeting."
"10yr BTP yields are up 36bp in 2 weeks, and everyone has spotted that the exit door for longs in peripheral bonds isn't much wider than the exit in corporate bonds, EM bonds or any of the other assets where rules to make banks safer have impacted market-making. No, I don't think we're in a bear market for Bonos and BTPs but I'll get a chance to read a few 'look, the Euro crisis is back' pieces anyway."
Key Quotes
"Our long-term bearish GBP/USD view is intact, but tactically, further downside in EUR/GBP between now and June 6 seems a good bet. There's a dearth of news in Europe, but the Euro's upside looks capped ahead of the ECB meeting."
"10yr BTP yields are up 36bp in 2 weeks, and everyone has spotted that the exit door for longs in peripheral bonds isn't much wider than the exit in corporate bonds, EM bonds or any of the other assets where rules to make banks safer have impacted market-making. No, I don't think we're in a bear market for Bonos and BTPs but I'll get a chance to read a few 'look, the Euro crisis is back' pieces anyway."