Flash: Complacency killed the cat - Societe Generale

FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale believes that the resilience of risk sentiment to the US Federal shutdown is impressive, bordering on complacent.

Key Quotes

“If voters pin the blame for the shutdown on the Republicans, the chances of a compromise being found improve, but if we are still in a deadlock after the weekend, nerves will start to fray.”

“Overnight, concerns about the need for corporate tax cuts to offset the consumption tax increase triggered a yen squeeze that risks turning nasty. spooked EM and change d the mood, while dovish comments from the RBNZ and soft trade and building approvals data in Australia have hit AUD and NZD.“