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Forex Flash: Short USD and long risk trade still intact - Societe Generale

Monday's correction, in words of Societe Generale currency strategist Sebastien Galy, "is a bit stronger than I thought, but the case is still the same, that is, this is a market to buy expensive assets on dips."

"We just lack the triggers or for that matter extreme medium term valuation signals. The main trade, short USD and long risk is still intact large and hence somewhat sensitive to setbacks" he note.

Sebastien adds that current market conditions have been not disrupted yet, "only standard risk management working its way through the system without a clear accelerator" he says.
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