Forex Flash: The dollars slowly turning - Societe Generale

Sebastien Galy, Senior FX Strategist at Societe Generale note that so far in 2013, the strongest of the currencies he monitors is one whose central bank has given up trying to push it down and is more worried about inflation, namely, the Brazilian real.

He adds that the weakest currencies are ones whose central banks are trying hard to weaken them (the pound and the yen). He writes, “This is not a coincidence and as the second month of 2013 draws to a close, short yen and short sterling positions remain core themes, while the dollar is slowly but surely turning higher across the board.”