Forex Flash: Global rate cut flows may support ´Non Euro, European´ Currencies – Societe Generale
FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that the trend of rate cuts where there is low risk to currency stability could offer some respite to 'Non Euro, European' currencies.
He adds that the combination of higher Euro rates/yields, and weak growth is a recipe for the Euro to be Europe's strongest currency, but a broad-based improvement in risk appetite can push demand for Scandi currencies, PLN, and even GBP at the margin. Juckes writes, "For EURGBP and EURNOK, I suspect that any Euro weakness though, may be a chance to buy the dip."
He adds that the combination of higher Euro rates/yields, and weak growth is a recipe for the Euro to be Europe's strongest currency, but a broad-based improvement in risk appetite can push demand for Scandi currencies, PLN, and even GBP at the margin. Juckes writes, "For EURGBP and EURNOK, I suspect that any Euro weakness though, may be a chance to buy the dip."
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