Quotes from Societe Generale Cross Asset Research:
-Janet Yellen has done a fair bit in recent days both to help stop the dollar's advance and to suck volatility out of the FX market. The prospect of a shift in Fed policy promises a move to a sustained period of higher volatility, but the talk of patience, and the emphasis on flexibility when the Fed finally acts, soften that effect.
-At the same time, the shocks from the fall in oil prices, and the ECB's move to QE, are behind us leaving the market is something of a vacuum. Away from FX, the calmer waters lead to a return of the search for yield, with corporate bonds and equities both benefiting, and in FX that is going to continue to support higher-yielding currencies and carry trades for a bit.
