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12 Aug 2013
Flash: Jitters in global equity markets, USD bid
FXstreet.com (Barcelona) - Sebastian Gally, strategist for Societe Generale said Jitters in global equity markets are giving the USD some bid.
Key Quotes:
“…but with a slew of US data releases ahead we are likely to re-establish the short USD long risk relationship until we head for early September with the next NFP release”.
“This suggests that the upward trajectory in EUR/USD is probably not over yet, while USD/JPY which correlates well with positive US economic surprises is showing signs of stabilizing”.
“EUR/USD is continuing to settle lower after failing to breach its longer-term downtrend. As of last Tuesday the market had moved to a marginal long EUR/USD position which most likely increased by Friday and is now being squeezed”.
“We are medium-term bears in EUR/USD, but it seems too early for the major move lower. We would wait for a clean breach above 1.3400 to establish further shorts”.
Key Quotes:
“…but with a slew of US data releases ahead we are likely to re-establish the short USD long risk relationship until we head for early September with the next NFP release”.
“This suggests that the upward trajectory in EUR/USD is probably not over yet, while USD/JPY which correlates well with positive US economic surprises is showing signs of stabilizing”.
“EUR/USD is continuing to settle lower after failing to breach its longer-term downtrend. As of last Tuesday the market had moved to a marginal long EUR/USD position which most likely increased by Friday and is now being squeezed”.
“We are medium-term bears in EUR/USD, but it seems too early for the major move lower. We would wait for a clean breach above 1.3400 to establish further shorts”.