By eFXdata — Jul 01 - 11:00 AM
Societe Generale Research warns of a scope for thin July market conditions to provide another USD surge through the Summer.
"We didn’t start the fire, but we tried to fight it….Billy Joel’s song is a reminder to people who complain about what terrible times we live in, that stuff is forever happening. But John Authers reminds us this morning that the first half of 2022 has been the worst for stock markets since 1962, when the Beatles released ‘Love me do’, the Cuban missile crisis scared the world, and England and France agreed to develop Concorde," SocGen notes.
"The CFTC data show positioning for the three G10 currencies with the most beta to risk sentiment (AUD, NZD and CAD) is only mildly short. Will thin July markets provide the ideal conditions for capitulation by those fighting the bearish mood in risk assets? If so, maybe this summer will see the dollar’s final surge," SocGen adds.
Société Générale Research/Market Commentary