AUD: No reason to buy other than valuation; GBP should keep its bid – SocGen
SocGen strategy thoughts on AUD, GBP and CAD
Societe Generale Research discusses its bias on AUD and GBP in the near-term.
“Our Chinese economics team reckons
the Chinese slowdown will prompt rate cuts, which is tangible, but when
will it weaken the yuan – which appears glued into a narrow range? Even
without that, however, we find no reason other than valuation (which doesn’t help) to like the Australian dollar,” SocGen notes.
“On the other hand, even transitory
inflation would be enough to make me wonder if the Bank of Canada might
be forced to rethink easy policies before too long. And the UK data will keep up pressure on the MPC to raise rates in 2022. So sterling should keep its mini-bid,” SocGen adds.