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Forex pairs in this Article » EUR/USD, GBP/USD (Bali) - According to Sebastien Galy, FX Strategist at Societe Generale, there is a growing plethora of evidence suggesting the risk appetite mood will continue into year-end.

Key Quotes

"The Fed told me too, US data is strong yet neither labour nor inflation signs are worrying for the Fed."

"Because I had pulled out almost two weeks ago on expectations the rally would fatigue."

"There tends to be a rally in December linked to accounting gimmicks (sell losers to lock in tax loss buy, proxies as replacement) and portfolio beautification (I really am long that prestige stock I love less than my investor)."

"Part of the hedge fund space is still running after their watermark or SPX performance."

"Bitcoin's bubble like characteristics tells me there is tremendous greed at play (1200 top this week and then down 500 usd or so), yet equity markets are not at nonsensical levels."

"If we translate this into FX, with stronger Chinese export (but weaker imports) and a WTO trade deal for the first time in ever almost and we have the recipe for USDJPY to continue moving higher. The search for yield suggests eurusd continues to move higher and similarly so for GBPUSD."

"Commodity currencies won't like the mixed message on domestic Chinese growth, but higher yield in NZ suggests NZDJPY should do better."
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