Societe Generale Cross Asset Strategy Research notes that last week collapse in bond yields increasingly seems like a cathartic cleansing of positions, and the key question now is how much further will Treasuries sell off as the market refocuses on carry-seeking.
Against this backdrop, SocGen argues that longer term trades like short GBP/CAD, GBP/SEK and GBP/NOK are going to have a mixed time…
"AUD/JPY gets a few days in the sun. EUR/USD could test 1.17, and we'll review somewhere there.
USD/JPY needs to get back to 111 before it's worth having a conversation about it," SocGen adds.
Source: Societe Generale Cross Asset ResearchOriginal Article
