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24 Feb 2014
Flash: EUR/JPY potential upside to 145.00 - Societe Generale
FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale, observes that a risk-on environment could help EUR/JPY.
Key Quotes
"Despite a steady diet of weak US economic data and the on-going developments in Kiev, risk sentiment has been improving steadily. Soft US data is blamed on the weather and while a growing number of economists are questioning whether something more fundamental may be happening, so far they are not having a market impact."
"10-year Treasury yields, 2.73% this morning, are mid-range and the S&P still looks as likely to push to new highs above 1851 as to form a double-top and fall. The great market-followers at S&P have upgraded Spain, giving peripheral spread tightening another nudge."
"George Soros apparently wants to buy European bank stocks, and in FX, a risk-friendly market is not helpful for the dolalr or the yen. We might see EUR/JPY make a further move towards 145."
Key Quotes
"Despite a steady diet of weak US economic data and the on-going developments in Kiev, risk sentiment has been improving steadily. Soft US data is blamed on the weather and while a growing number of economists are questioning whether something more fundamental may be happening, so far they are not having a market impact."
"10-year Treasury yields, 2.73% this morning, are mid-range and the S&P still looks as likely to push to new highs above 1851 as to form a double-top and fall. The great market-followers at S&P have upgraded Spain, giving peripheral spread tightening another nudge."
"George Soros apparently wants to buy European bank stocks, and in FX, a risk-friendly market is not helpful for the dolalr or the yen. We might see EUR/JPY make a further move towards 145."