Back
3 Mar 2014
Flash: EUR expensive on Ukraine ahead of ECB - Societe Generale
FXStreet (Guatemala) - Sebastien Galy, Senior FX Strategist at Societe Generale commented on the Ukraine situation.
Key Quotes
"The shock is mostly localized to eurasia and should stay there. Weaker Chinese PMIs matters far more than Ukraine, while the Eurozone is condemned to be the world's safe bond carry trade absent any alternative."
"It leaves the EUR expensive and at risk of another ECB disappointment. The deflationary impact of a weaker EM on CPI is weak and slow, the channel of corporates holding off on investment and pressuring costs lower is unstable and hence unfit for current econometric methodology."
Key Quotes
"The shock is mostly localized to eurasia and should stay there. Weaker Chinese PMIs matters far more than Ukraine, while the Eurozone is condemned to be the world's safe bond carry trade absent any alternative."
"It leaves the EUR expensive and at risk of another ECB disappointment. The deflationary impact of a weaker EM on CPI is weak and slow, the channel of corporates holding off on investment and pressuring costs lower is unstable and hence unfit for current econometric methodology."