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26 Jun 2013
Flash GBP to follow EUR lower – Societe Generale
FXstreet.com (London) - Kit Juckes at Societe Generale said Monday's particularly silly short sterling sell-off and squeeze higher in the sterling money market curve, has now been fully reversed.
Rates are still a good bit higher he said than they were however and with the Chancellor reminding us today of the log-term need for fiscal restraint, he still likes the UK/US rate trade. “Yesterday's order book for 3 ½ 2068 gilts shows that long-dated yield-hunters are still around in the UK”. He said he is old enough to realise that people investing for their pensions will be quick to lock in upticks in long-dated yields, after seeing such awful levels in recent years. He likes Gilts as a relative trade to Treasuries, and expect GBP/USD to follow EUR/USD lower.
Rates are still a good bit higher he said than they were however and with the Chancellor reminding us today of the log-term need for fiscal restraint, he still likes the UK/US rate trade. “Yesterday's order book for 3 ½ 2068 gilts shows that long-dated yield-hunters are still around in the UK”. He said he is old enough to realise that people investing for their pensions will be quick to lock in upticks in long-dated yields, after seeing such awful levels in recent years. He likes Gilts as a relative trade to Treasuries, and expect GBP/USD to follow EUR/USD lower.