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29 Dec 2014
FX is all about politics today – SG
FXStreet (Barcelona) - Kit Juckes of Societe Generale comments that FX movements reflect the political moods of the respective economies, further noting that Swedish politicians supported the krona while Russian politics dragged the RUB down again.
Key Quotes
“Russian politics (RUB down again as the PMI tumbles and the oil price stays near lows); Swedish poltiics (Swedish krona up, supported by the news that the minority government has reached an agreement with the opposition that allows the budget to pass, and averts the need for snap elections).“
“The Director-General of the British Chambers of Commerce is so concerned about the effects of political uncertainty that he has written to the leaders of the nine (!) largest parties urging them to avoid ‘point-scoring' in the election campaign. That sees a forlorn hope but is a reminder that for sterling, politics, the size of the budget deficit and the size of the current account deficit may all be more important than the rate of growth of GDP in 2015.”
“Greek political chaos could take EUR/GBP through 0.78 but it would drag GBP/USD though 155 at the same time. “
Key Quotes
“Russian politics (RUB down again as the PMI tumbles and the oil price stays near lows); Swedish poltiics (Swedish krona up, supported by the news that the minority government has reached an agreement with the opposition that allows the budget to pass, and averts the need for snap elections).“
“The Director-General of the British Chambers of Commerce is so concerned about the effects of political uncertainty that he has written to the leaders of the nine (!) largest parties urging them to avoid ‘point-scoring' in the election campaign. That sees a forlorn hope but is a reminder that for sterling, politics, the size of the budget deficit and the size of the current account deficit may all be more important than the rate of growth of GDP in 2015.”
“Greek political chaos could take EUR/GBP through 0.78 but it would drag GBP/USD though 155 at the same time. “