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4 Jul 2014
Buying USD/JPY could be a good trade - Societe Generale
FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale, notes the bullish momentum in the USD is building up.
Key Quotes
"The US June employment report was stronger than expected, but it won't trigger a sustained dollar rally in the absence of faster wage growth. This is particularly so when the Fed is working hard to emphasise the low terminal level of the Fed Funds rate."
"Patience is still required for a durable trend lower in EUR/USD, but long USD/JPY appeals here. Meanwhile, the Riksbank acts decisively against Swedish deflation risks. Given the zero lower bound on rates, the Swedish krona needs to weaken a lot further."
Key Quotes
"The US June employment report was stronger than expected, but it won't trigger a sustained dollar rally in the absence of faster wage growth. This is particularly so when the Fed is working hard to emphasise the low terminal level of the Fed Funds rate."
"Patience is still required for a durable trend lower in EUR/USD, but long USD/JPY appeals here. Meanwhile, the Riksbank acts decisively against Swedish deflation risks. Given the zero lower bound on rates, the Swedish krona needs to weaken a lot further."