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4 Jun 2014
ECB, buying to sell fact? - Societe Generale
FXStreet (Guatemala) - Kit Juckes, Global Head of Currency Strategy at Societe Generale notes the strange behaviours in euro denominated assets and markets.
Key Quotes:
"The market response to this morning's Euro Area Flash CPI release for May (headline fell to 0.5%, core to 0.7%), has been to take 10-year Bund yields up to a dizzy 1.41%, their highest level in a week".
"Heightened expectation of ECB action in response, or ‘buy the rumour, sell the fact' in action?".
"It's yet another reminder that with the world and his brother ready for the ECB to throw everything from a peashooter to a bazooka at the problem of low inflation, lack of growth, lack of lending, overvalued Euro and snowballing debt levels, perverse reactions are a possibility."
Key Quotes:
"The market response to this morning's Euro Area Flash CPI release for May (headline fell to 0.5%, core to 0.7%), has been to take 10-year Bund yields up to a dizzy 1.41%, their highest level in a week".
"Heightened expectation of ECB action in response, or ‘buy the rumour, sell the fact' in action?".
"It's yet another reminder that with the world and his brother ready for the ECB to throw everything from a peashooter to a bazooka at the problem of low inflation, lack of growth, lack of lending, overvalued Euro and snowballing debt levels, perverse reactions are a possibility."