Societe Generale Research discusses the current market conditions and flags 2 things underpin its core views.
"Absent more news, two things underpin core views. One is the recovery in oil prices, which reached their best levels of the year yesterday. NOK is our favourite G10 "currency. The second is the (over)-valuation of the dollar," SocGen notes.
"And in the real world, things aren't much better. Weak Chinese data, headlined by a further slowdown in industrial production growth to 5.3% ytd y/y, helped turn around a positive US equity market session. The fact that the yen, Australian and New Zealand dollars are at the bottom of the FX rankings this morning highlights the fact that the yen currently gets very little support from risk aversion at all," SocGen adds.