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12 Feb 2013
Forex Flash: FX market is back to ‘business as usual’ – Societe Generale
Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that for the most part, the FX market is back to´business as usual´.
He sees that European Finance Ministers are not going to undermine the Euro and the G7 has resisted the temptation to try and stop the yen’s decline and issued a bland call for market-determined FX rates instead. He writes, “EUR/USD is slowly regaining some of the ground it lost as a result of Mario Draghi’s dovish tone at last week’s ECB meeting, and EUR/USD vol is falling back. The yen is still weakening, and USD/JPY vol is still rising. EUR/JPY is almost back to its highs.”
He sees that European Finance Ministers are not going to undermine the Euro and the G7 has resisted the temptation to try and stop the yen’s decline and issued a bland call for market-determined FX rates instead. He writes, “EUR/USD is slowly regaining some of the ground it lost as a result of Mario Draghi’s dovish tone at last week’s ECB meeting, and EUR/USD vol is falling back. The yen is still weakening, and USD/JPY vol is still rising. EUR/JPY is almost back to its highs.”