Forex Flash: The search for yield persists - Societe Generale

FXstreet.com (Barcelona) - Sebastien Galy, Senior FX Strategist at Societe Generale notes that overnight, Japanese investors were still repatriating assets for the third week in a row.

He continues to add that since last week, this pattern is expected. Further, he adds that Life insurers announced their plans generally of expanding their foreign assets but have prefer to ride the wave of a rising Nikkei and P&L gains in the JGB curve at home for now. For all the anecdotes of aggressive Japanese buyers of foreign bonds, he sees that the data continues to point to the opposite. Elsewhere, he notes that South Korean growth data came out much better than expected, helping to lift risk assets in Asia overnight. He writes, “Australian and NZ holiday today, but NZD continues to be bid following slightly hawkish RBNZ yesterday. There's no holiday in the global search for yield.”