Forex Flash: FX market is back to ‘business as usual’ – Societe Generale

Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that for the most part, the FX market is back to´business as usual´.

He sees that European Finance Ministers are not going to undermine the Euro and the G7 has resisted the temptation to try and stop the yen’s decline and issued a bland call for market-determined FX rates instead. He writes, “EUR/USD is slowly regaining some of the ground it lost as a result of Mario Draghi’s dovish tone at last week’s ECB meeting, and EUR/USD vol is falling back. The yen is still weakening, and USD/JPY vol is still rising. EUR/JPY is almost back to its highs.”