G10 FX: S/T Tactical Views On EUR/USD, AUD/JPY, USD/JPY - SocGen

Societe Generale Cross Asset Strategy Research notes that last week collapse in bond yields increasingly seems like a cathartic cleansing of positions, and the key question now is how much further will Treasuries sell off as the market refocuses on carry-seeking.

 Against this backdrop, SocGen argues that longer term trades like short GBP/CAD, GBP/SEK and GBP/NOK  are going to have a mixed time... 

"AUD/JPY gets a few days in the sun. EUR/USD could test 1.17, and we'll review somewhere there.

USD/JPY needs to get back to 111 before it's worth having a conversation about it," SocGen adds.

Source: Societe Generale Cross Asset Research