Societe Generale has “significantly” downgraded the U.S. dollar content of its global asset allocation, Alain Bokobza, head of global asset allocation and equity strategy at Societe Generale tells a news event in Frankfurt. The reduction of U.S. assets in the global allocation is triggered by the weaker USD, a function of a more dovish U.S. Federal Reserve. The reallocation out of dollars is spread into a wider range of currencies, including sterling, the yen, emerging market currencies and the euro, Mr. Bokobza says.
Societe Generale increased allocation to sterling in the last quarter of 2018, anticipating that a no-deal, hard Brexit will be avoided, Alain Bokobza, head of global asset allocation and equity strategy at Societe Generale tells a news event in Frankfurt. “A no deal would be very-very damaging for the U.K. economy, with contagion impact on Europe,” Bokobza says. Societe Generale’s basecase scenario is a deal which would be bullish for sterling, and would also be supportive of euro.