What SocGen is looking for next
Societe Generale Research discusses its tactical views on USD and GBP.
"The Fed cut rates by 25bp, as was universally expected, but with two FOMC members dissenting in favour of leaving rates on hold, the dollar was bid before the Chairman's Press Conference. He described the mood as a mid-mid-cycle adjustment, and markets are worried that means there isn't much more easing coming. Cue further equity market weakness and further dollar strength," SocGen notes.
"Sterling bears had a bit of a day off yesterday, but in between the pressure on GBP/USD (which makes more headlines than EUR/GBP), the on-going political carnage as Boris Johnson lays out his Brexit plans and the weakness of the economy, there's nothing to like about the pound," SocGen adds.
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