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11 Feb 2013
Forex Flash: EU FinMin meet & G20 give scope for FX jawboning - Societe Generale
Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that the EU Finance Ministers will discuss Cyprus and the Euro this week.
He comments that political scandal in Spain, political uncertainty in Italy, and a 10bp fall back in 2yr Euro rates thanks to Mr Draghi’s massaging of the market, have all helped to cap the Euro. Juckes writes, “It is hard to see EU Finance Ministers really agreeing on a common stand on the currency, given the divergent views between Germany and France, but any German concession towards France’s desire for a weaker Euro will see this correction continue.”
He comments that political scandal in Spain, political uncertainty in Italy, and a 10bp fall back in 2yr Euro rates thanks to Mr Draghi’s massaging of the market, have all helped to cap the Euro. Juckes writes, “It is hard to see EU Finance Ministers really agreeing on a common stand on the currency, given the divergent views between Germany and France, but any German concession towards France’s desire for a weaker Euro will see this correction continue.”