First appeared on eFXplus on Dec 09 - 09:30 AM
Societe Generale Research discusses its latest views on a selection of G10 pairs.
"The weekend saw more softness in Chinese exports, down 1.1% y/y dollar terms, and up 1.3%y/y in yuan. The currency hasn't reacted, reflecting the importance of US/Chinese trade talks, which come to a head as the timeline for the imposition of the next and final round of import tariffs approaches," SocGen notes.
"It's hard to see EUR/USD rallying much against the Eurozone data backdrop but sentiment is awful, and that protects the downside. A move higher in USD/CNH or a failure of the Conservatives to win the now expected majority in Parliament are the most likely catalyst for a fresh break on the downside.
EUR/JPY shorts still work, as do NOK/SEK longs, AUD/NZD longs, and this is a perfectly good spot to reload USD/CAD shorts after contrasting labour market data gave the pair a lift," SocGen adds.
Société Générale Research/Market Commentary