Back
1 Jul 2014
Quarter end flows causing volatility - Societe Generale
FXStreet (Guatemala) - Kit Juckes, Global Head of Currency Strategy at Societe Generale explained month/quarter-ends can throw up some violent FX movements.
Key Quotes:
"Yesterday is was EUR/USD and GBP/USD which spiked higher. The euro is back above the level it was at when the ECB eased last month, yet another reminder that the natural flow of capital is currently into euros and the professional market's natural position is short."
"Month-end spikes in currency pairs usually correct in the coming days, so chasing these two pairs higher doesn't seem a good idea. EUR/USD remains a pair we want to short in September but not yet and any position today would be a very short-term tactical reaction to yesterday's move."
Key Quotes:
"Yesterday is was EUR/USD and GBP/USD which spiked higher. The euro is back above the level it was at when the ECB eased last month, yet another reminder that the natural flow of capital is currently into euros and the professional market's natural position is short."
"Month-end spikes in currency pairs usually correct in the coming days, so chasing these two pairs higher doesn't seem a good idea. EUR/USD remains a pair we want to short in September but not yet and any position today would be a very short-term tactical reaction to yesterday's move."