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28 May 2013
Flash: ECB expectations and technical opportunities - Societe Generale
FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that in Europe there is little news, higher core yields, lower peripheral yields, a flat currency and a resumption of spread tightening in credit.
He writes, “We're really waiting for the ECB next week I suppose. The rest (economic weakness in Spain, etc) is well known. I can't help thinking the fact the euro can't catch a bid even today is significant, though. The action comes round the edges. Our chartists tell me they now see confirmation of EUR/CHF breaking to the upside and EUR/GBP forming a double top. Why, oh why does GBP/CHF always look like a screaming buy when the snow's melted? It is, though, a wonderful risk/reward long here, in my view.”
He writes, “We're really waiting for the ECB next week I suppose. The rest (economic weakness in Spain, etc) is well known. I can't help thinking the fact the euro can't catch a bid even today is significant, though. The action comes round the edges. Our chartists tell me they now see confirmation of EUR/CHF breaking to the upside and EUR/GBP forming a double top. Why, oh why does GBP/CHF always look like a screaming buy when the snow's melted? It is, though, a wonderful risk/reward long here, in my view.”