http://www.foxbusiness.com/2011/08/08/socgen-greater-odds-global-intervention-in-fx/#ixzz1UT3hjtOJ
Financial Services
SocGen: Greater Odds Of Global Intervention In FX
By Sue Chang
Published August 08, 2011
| MarketWatch Pulse
SAN FRANCISCO -- The odds for coordinated action by central banks around the world to intervene in the global currency market is rising on a loss of confidence in the U.S. dollar, according to currency strategists at Societe Generale. The strategists noted that the Bank of Japan and the Swiss National Bank did not step into the markets on Monday. "Much therefore indicates that central banks are preparing themselves for a global reaction," said Sebastien Galy and Michael Sneyd in their report to investors. But any intervention will have to be on a "very large scale," combined with structural reforms. "Given that, it is unlikely that a common platform is fully agreed on or that they are fully operational to deliver it," they said. Timing is also uncertain at this point with the Federal Open Market Committee scheduled to meet Tuesday. The U.S. dollar index , which measures the U.S. unit's performance against a basket of six currencies, strengthened to 74.721 in recent trade from 74.592 late Friday.
Copyright © 2011 MarketWatch, Inc.
Read more: http://www.foxbusiness.com/2011/08/08/socgen-greater-odds-global-intervention-in-fx/#ixzz1UTEm96O7
Financial Services
SocGen: Greater Odds Of Global Intervention In FX
By Sue Chang
Published August 08, 2011
| MarketWatch Pulse
SAN FRANCISCO -- The odds for coordinated action by central banks around the world to intervene in the global currency market is rising on a loss of confidence in the U.S. dollar, according to currency strategists at Societe Generale. The strategists noted that the Bank of Japan and the Swiss National Bank did not step into the markets on Monday. "Much therefore indicates that central banks are preparing themselves for a global reaction," said Sebastien Galy and Michael Sneyd in their report to investors. But any intervention will have to be on a "very large scale," combined with structural reforms. "Given that, it is unlikely that a common platform is fully agreed on or that they are fully operational to deliver it," they said. Timing is also uncertain at this point with the Federal Open Market Committee scheduled to meet Tuesday. The U.S. dollar index , which measures the U.S. unit's performance against a basket of six currencies, strengthened to 74.721 in recent trade from 74.592 late Friday.
Copyright © 2011 MarketWatch, Inc.
Read more: http://www.foxbusiness.com/2011/08/08/socgen-greater-odds-global-intervention-in-fx/#ixzz1UTEm96O7