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19 Apr 2013
Forex Flash: Sell EM growth and buy liquidity currencies - Societe Generale
FXstreet.com (Barcelona) - Sebastien Galy, Senior FX Strategist at Societe Generale has recommended that investors sell EM growth currencies and buy liquidity currencies.
He notes that while he as turned cautiously bullish on EM currencies after the strong risk on signal sent by the BoJ, it is important to stress that significant differentiation is likely to play out in the EM FX universe. He writes, “In particular, we are bullish on liquidity currencies, but bearish on growth currencies. The best illustration of this relative value view is perhaps the long TRY/RUB position that we just initiated this week.”
He notes that while he as turned cautiously bullish on EM currencies after the strong risk on signal sent by the BoJ, it is important to stress that significant differentiation is likely to play out in the EM FX universe. He writes, “In particular, we are bullish on liquidity currencies, but bearish on growth currencies. The best illustration of this relative value view is perhaps the long TRY/RUB position that we just initiated this week.”