13 Jan 2014
Flash: BoE, ECB or FOMC to act? - Societe Generale
FXstreet.com (Guatemala) - Kit Juckes, strategists at Societe Generale explained the biggest economic impact of renewed dollar weakness will be felt in Europe, where the ECB just isn't going to be let off the hook.
Key Quotes:
“ The economy is drifting towards deflation, money supply and credit growth are non-existent, and Mario Draghi talking vaguely about having more scope to ease won't cut it”.
“EUR/USD could test highs above 1.38 yet again, but a break of 1.40 would cause a policy crisis. But we prefer using Euro strength to open GBP/USD shorts, which we aim to do above 1.66 if possible in anticipation of UK policy-makers emphasising that it will be the FOMC, not the MPC, which acts to take heat out of the hottest parts of the economy this year”.
Key Quotes:
“ The economy is drifting towards deflation, money supply and credit growth are non-existent, and Mario Draghi talking vaguely about having more scope to ease won't cut it”.
“EUR/USD could test highs above 1.38 yet again, but a break of 1.40 would cause a policy crisis. But we prefer using Euro strength to open GBP/USD shorts, which we aim to do above 1.66 if possible in anticipation of UK policy-makers emphasising that it will be the FOMC, not the MPC, which acts to take heat out of the hottest parts of the economy this year”.