By eFXdata — Apr 08 - 09:30 AM
Societe Generale discusses the USD outlook and expects a period of consolidation in the near-term.
"A quiet bond market means that equities and emerging markets are both happier and risk is ‘on’, while the top G10 currencies include the SEK (a 0.7% increase in the new monthly GDP indicator caught the eye), the AUD and NZD. And the dollar’s languishing (relatively)," SocGen notes.
"The key today is rather a mundane one. EUR/USD has nestled up against its 200-day average, lacking momentum (or convincing drivers) to charge higher, but well enough supported by the news flow...In short, the energy has gone out of the dollar’s Q1 rebound, just as it has gone out of the bond sell-off, but a period of consolidation (and day to day frustration) is more likely than an immediate reversion to the dollar’s weaker trend," SocGen adds.
Société Générale Research/Market Commentary