LIVE MARKETS-Societe Generale's currency recommendation straitjacket
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SOCIETE GENERALE'S CURRENCY RECOMMENDATION STRAITJACKET
Markets are focused on the oil price at the moment, no news there, but it's got to the stage where Societe Generale currency analysts have given themselves a few rules.
"At the bare minimum, we won’t be putting out recommendations to short the USD, CAD or NOK as long as this crisis lasts," their chief currency strategist Kit Juckes wrote in a Thursday note.
"And we will only recommend buying energy-importers’ currencies against their peers. In other words, we still like AUD and NZD, but we will only consider longs against JPY, EUR or other energy importers’ currencies."
The logic is clear enough. A sustained terms of trade shock, would help energy exporters’ currencies at the expense of those most dependent on imported energy
But we'll see how long that rule lasts. Certainly when writing about markets as a journalist as soon as you try and create a hard and fast rule, some strange situation comes along and you have to break it.
(Alun John)
EARLIER ON LIVE MARKETS:
CITI: ENERGY STOCKS AREN’T JUST ABOUT THE OIL PRICE CLICK HERE
90% OF THE STOXX IN THE RED CLICK HERE
BEFORE THE BELL: EUROPEAN FUTURES TUMBLE AS ECB, BOE LOOM CLICK HERE
CENTRAL BANKERS SOUND INFLATION ALARM CLICK HERE
