7 Nov 2013
Flash: When to expect the ‘strong dollar' trend to be back? - Societe Generale
FXstreet.com (Barcelona) - Getting the ‘strong dollar' trend back at full steam will be a choppy process, notes Kit Juckes, Head of Currency Strategy at Societe Generale.
Key Quotes
"Economic recovery is a necessary condition. Is it sufficient even in the face of the most dovish central bank we've seen in generations? There will be more stops and starts before it becomes established and I can't help thinking that since FX follows short-term rates more than long-term ones (I don't know why but it has always been so as far as I can tell), an acceleration will only happen when markets start to price in Fed hike on a 1-2yr horizon."
Key Quotes
"Economic recovery is a necessary condition. Is it sufficient even in the face of the most dovish central bank we've seen in generations? There will be more stops and starts before it becomes established and I can't help thinking that since FX follows short-term rates more than long-term ones (I don't know why but it has always been so as far as I can tell), an acceleration will only happen when markets start to price in Fed hike on a 1-2yr horizon."