25 Jun 2014
USD/CAD sell the rally - Societe Generales
FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale, recommends selling rallies in the USD/CAD.
Key Quotes
"After news of airstrikes into Iraq from Syria yesterday evening and a downed helicopter overnight in Ukraine, the risk mood is dented. With equities and Treasury yields both lower, EMFX is softer (IDR the biggest loser) and the yen is the best of the majors, though at USD/JPY 101.90,it remains trapped in a terrifyingly tight range."
"The main focus today will be on US Q1 GDP revisions, likely to be big and downwards. Q1 may end up at -2.4%, a big enough fall in output to prompt many to wonder if a storm can really be blamed for such a big economic hit."
"It's a good thing the most recent data have been stronger, a trend which carried on with consumer confidence and new home sales yesterday. That positive tone, allied to the on-going super-easy Fed stance, means that a ‘buy the dip' strategy remains in EMFX and in high-beta currencies generally. So we will look to sell into USD/CAD strength, in particular."
Key Quotes
"After news of airstrikes into Iraq from Syria yesterday evening and a downed helicopter overnight in Ukraine, the risk mood is dented. With equities and Treasury yields both lower, EMFX is softer (IDR the biggest loser) and the yen is the best of the majors, though at USD/JPY 101.90,it remains trapped in a terrifyingly tight range."
"The main focus today will be on US Q1 GDP revisions, likely to be big and downwards. Q1 may end up at -2.4%, a big enough fall in output to prompt many to wonder if a storm can really be blamed for such a big economic hit."
"It's a good thing the most recent data have been stronger, a trend which carried on with consumer confidence and new home sales yesterday. That positive tone, allied to the on-going super-easy Fed stance, means that a ‘buy the dip' strategy remains in EMFX and in high-beta currencies generally. So we will look to sell into USD/CAD strength, in particular."