Back
3 Mar 2015
Euro bearish, but avoid selling close to lows – SG
FXStreet (Barcelona) - Kit Juckes of Societe Generale, remains bearish on the euro over the medium-term, but notes that the recent EU data has had the markets searching for a clear trend in the single currency.
Key Quotes
“European data remain very mixed, from strength in Ireland to weakness in France, but the overall tone is improving, as lower oil prices help and credit growth picks up marginally. It looks more like an upswing in a period of stagnation, than anything approaching ‘escape velocity' but it leaves the FX market lost for a trend in the Euro.”
“We remain bearish medium-term, but don't want to sell this close to lows into lop-sided positioning.”
“It looks easier in equity markets, where the currency, and the prospect of QE is causing a flood of money into European ETFs.”
Key Quotes
“European data remain very mixed, from strength in Ireland to weakness in France, but the overall tone is improving, as lower oil prices help and credit growth picks up marginally. It looks more like an upswing in a period of stagnation, than anything approaching ‘escape velocity' but it leaves the FX market lost for a trend in the Euro.”
“We remain bearish medium-term, but don't want to sell this close to lows into lop-sided positioning.”
“It looks easier in equity markets, where the currency, and the prospect of QE is causing a flood of money into European ETFs.”