AUD/NZD: A Good Buy; EUR/USD: Hedge Into UK EU Referendum - SocGen
t

Register Forex TV Video Directory FAQ Members List FX Calendar Search Today's Posts Mark Forums Read

 
 
           

Go Back   forexab.com >


Preferred Links
Reply
 
Thread Tools Display Modes
  post #1  
Old 06-08-2016, 08:27 AM
Alexis's Avatar
Alexis Alexis is offline
Senior Member
 
About
Join Date: Feb 2009
Posts: 791
Thanks: 2
Thanked 155 Times in 83 Posts
Alexis is on a distinguished road
Default AUD/NZD: A Good Buy; EUR/USD: Hedge Into UK EU Referendum - SocGen

AUD/NZD: A Good Buy; EUR/USD: Hedge Into UK EU Referendum - SocGen
07 Jun 2016 09:40 EDT

kit Juckes, Global FIC Strategist
Societe Generale Cross Asset Strategy

The big overnight movers are the pound (regaining some of yesterday’s politically-inspired fall) and the Australian dollar, which has reacted positively to the RBA leaving rates on hold. The RBA cut rates in April and after stronger then expected growth data, isn’t in a big hurry to act again. The Statement was balanced however and the lack of inflation and the global and trade environment could see a further cut in due course. We’re not bailing out of our AUD shorts, though at these levels, AUD/NZD is a good buy.

We’ll get Chinese FX reserves data overnight and the RBNZ tomorrow evening. This morning also saw Swiss FX reserves, up to a new high at CHF 602.1bn, indicative of how hard they have to work to compensate for a lack of capital outflows.

None of this is a recipe for buying vol, though maybe, given the way markets are now priced, using buying EUR/USD puts as protection ahead of the UK EU referendum now makes sense.
Live Help
Reply With Quote
Reply

Tags
aud/nzd, referendum, eur/usd, overnight, lack, rba, reserves, data, buying, cut, socgen, global, rates, hedge, buy;, morning, swiss, chinese, shorts, aud, levels, buy, tomorrow, rbnz, we’ll

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

View My Stats