EUR/JPY: Shorts a long-term trade - SocGen
Trade talk on EUR/JPY and USD/CAD
Societe Generale Research maintains a structural long-term bearish bias on EUR/JPY and adopts a tactical short-term bias on USD/CAD.
"Slower US growth, lower US yields, a continued US slowdown, will all eventually turn the dollar around. The howls from the White House do reflect a currency that's too strong. All we will learn this week is whether the ECB can have any meaningful impact on the euro at this point in the cycle," SocGen notes.
"In the meantime, yen longs are squealing
but short EUR/JPY is a long-term trade. CAD looks a decent bet to go on
performing, at least against the US dollar, while the wider bounce in
risk-sensitive currencies needs to be treated with considerable
caution," SocGen adds.