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6 Nov 2015
Sell EUR/JPY ahead of December ECB and Fed meetings – Societe Generale
FXStreet (Delhi) – Research Team at Societe Generale, suggests that the dollar has been lifted by US rates repricing, and short EUR/JPY could thus now offer better risk/reward than short EUR/USD.
Key Quotes
“Subtle FOMC communication has preserved risk assets so far, but the BoJ status quo and a wave of risk aversion in the event of a 16 December lift-off would benefit the yen. EUR/JPY faces a near-term bearish technical picture, has been driven by medium-term euro rates this year (ECB proxy – our economists expect a deposit rate cut and a QE extension in size and duration on 3 December), and remains undervalued on a long-term basis.”
Key Quotes
“Subtle FOMC communication has preserved risk assets so far, but the BoJ status quo and a wave of risk aversion in the event of a 16 December lift-off would benefit the yen. EUR/JPY faces a near-term bearish technical picture, has been driven by medium-term euro rates this year (ECB proxy – our economists expect a deposit rate cut and a QE extension in size and duration on 3 December), and remains undervalued on a long-term basis.”