9 Jul 2013
Flash: Risks around Bernanke speaking - Socgen
FXstreet.com (London) - Kit Jukes, Global Head of Currency Strategy at Societe Generale mentions the risk around Bernanke speaking tomorrow.
He feels, at the current rate of progress, EUR/USD will get back to 1.30 and the S&P will hit new highs if Ben Bernanke is as dovish as everyone expects when he speaks in Cambridge Mass, tomorrow.
He said with a limited economic calendar at the start of this week, the focus is on a lack of new bad news in Europe, and the hope that Bernanke’s speech will help settle Treasury yields into a range, rather than perpetuate the sell-off. The Fed Chairman must, he added, despite receiving more than his share of criticism, be pleased with the way air is being let out of the carry-bubble: a necessary adjustment in yields is happening without excessive disruption to domestic markets.
He feels, at the current rate of progress, EUR/USD will get back to 1.30 and the S&P will hit new highs if Ben Bernanke is as dovish as everyone expects when he speaks in Cambridge Mass, tomorrow.
He said with a limited economic calendar at the start of this week, the focus is on a lack of new bad news in Europe, and the hope that Bernanke’s speech will help settle Treasury yields into a range, rather than perpetuate the sell-off. The Fed Chairman must, he added, despite receiving more than his share of criticism, be pleased with the way air is being let out of the carry-bubble: a necessary adjustment in yields is happening without excessive disruption to domestic markets.