Societe Generale FX Strategy Research notes that the break of 99 in DXY is 'ugly' pointing to a break of 110 in USD/JPY which seems inevitable.
Elsewhere, SocGen argues that EUR/USD rally isn’t only about the USD setback following the failure to pass the Healthcare Bill noticing that better European economic data, German voters voting for the status quo and a lack of disquiet about the French elections all allow post November 8 moves to be unwound.
SocGen also stays bullish EUR/GBP arguing that real yields suggest that sterling is vulnerable, and positioning data confirm the market is very short.
Source: Societe Generale Cross Asset ResearchOriginal Article
