Back
17 Jul 2013
Flash: Bernanke will be a dove today - SocGen
FXstreet.com (Barcelona) - According to Kit Juckes, Head of FX at Societe Generale, "Bernanke will be a dove in his testimony and it will continue to surprise me that it is actually not fully priced in."
Juckes notes the last soft US retail data, "suggest the last quarter print was poor, giving Bernanke's selling thesis support."
Juckes adds: "The FX market already did stop losses on long usd vs eur last week so that it is now long USDJPY and short AUDUSD, but with Abe set for re-election this week end, this core USD/JPY trade is unlikely to be hammered too badly." More importantly, when checking the outflows out of Japan, "they have started helping to keep USD/JPY above the 99 fair value determined a few weeks back" Juckes said.
Juckes notes the last soft US retail data, "suggest the last quarter print was poor, giving Bernanke's selling thesis support."
Juckes adds: "The FX market already did stop losses on long usd vs eur last week so that it is now long USDJPY and short AUDUSD, but with Abe set for re-election this week end, this core USD/JPY trade is unlikely to be hammered too badly." More importantly, when checking the outflows out of Japan, "they have started helping to keep USD/JPY above the 99 fair value determined a few weeks back" Juckes said.