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19 Mar 2015
US: Growth steadily if slowly improving - SocGen
FXStreet (Bali) - Societe Generale notes that the US data should continue to show that the nation is steadily if slowly improving.
Key Quotes
"The market is seeing a sharp short covering of its bearish oil long USD, short fixed income position. While speculative money is hammered by the wonders of risk management, it will meet in the next few days a force that can move techtonic plates. Negative interests are forcing a reallocation of portfolios out of the Eurozone into the US. The Fed may have stepped in to dampen this effect (as has the ECB to some extent), but the mechanism is still at work."
"Reserve managers and asset managers will be waiting to offload EUR positions and buy US Fixed Income even with much lower curves. The moneys involve are large and patient suggesting we will have to wait for the full liquidity of the later part of the European morning for it to gently step in. Meanwhile EM and EM curves rally, USDCAD is back at the bottom of its 1.2350-1.28 range. US data should continue to show that the US is steadily if slowly improving. The turtle moves."
Key Quotes
"The market is seeing a sharp short covering of its bearish oil long USD, short fixed income position. While speculative money is hammered by the wonders of risk management, it will meet in the next few days a force that can move techtonic plates. Negative interests are forcing a reallocation of portfolios out of the Eurozone into the US. The Fed may have stepped in to dampen this effect (as has the ECB to some extent), but the mechanism is still at work."
"Reserve managers and asset managers will be waiting to offload EUR positions and buy US Fixed Income even with much lower curves. The moneys involve are large and patient suggesting we will have to wait for the full liquidity of the later part of the European morning for it to gently step in. Meanwhile EM and EM curves rally, USDCAD is back at the bottom of its 1.2350-1.28 range. US data should continue to show that the US is steadily if slowly improving. The turtle moves."