The Dollar whirlwind gains strength. Kit Juckes, global chief currency strategist at Société Générale, discusses the outlook for the currency market.
An opportunity to buy SEK and possibly more NOK
The current period of dollar strength is causing some rebound in volatility, although from very depressed levels in some pairs. I hope this gives us the opportunity to buy SEK, and possibly more NOK, in the coming days. I really don’t want to be left behind, without taking advantage of the relative cheapness of the two Scandinavians.
I also don’t want to be left behind when EUR/GBP breaks above 0.87. Sterling interest rate support has been cut and while there is still room for the economy to perform less poorly than the (pessimistic) consensus expects, that will not prevent a gradual rise to 0.90 and beyond with the time.
As for AUD, NZD and JPY, all of which are at psychologically interesting levels, I don’t dare buy any of them.
USD/CNY is slowly rising again and a break above early September highs would spread to the rest of the region.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
