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4 Mar 2013
Forex Flash: No signs of Italian progress - Societe Generale
Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that there haven’t been any visible signs of progress in Italian government-building over the weekend.
He writes, “Technical analysts tell me that EUR/USD 1.2970 is the big level to watch rather than EUR/USD but either way, with 10yr BTP yields back up at 4.85% as I write, the pressure on the Euro remains.” Elsewhere, he feels that CHF and GBP meanwhile are still better shorts that the Euro, even if these trades are already embraced by the market. He comments that the Spanish bond auction on Thursday will bear watching as well as any EcoFin meeting comments.
He writes, “Technical analysts tell me that EUR/USD 1.2970 is the big level to watch rather than EUR/USD but either way, with 10yr BTP yields back up at 4.85% as I write, the pressure on the Euro remains.” Elsewhere, he feels that CHF and GBP meanwhile are still better shorts that the Euro, even if these trades are already embraced by the market. He comments that the Spanish bond auction on Thursday will bear watching as well as any EcoFin meeting comments.