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FX Scorecard: Long AUD, NZD, USD Versus Short CAD, EUR, NOK‏

Published 03/31/2014, 05:29 AM
Updated 05/14/2017, 06:45 AM

This week the scorecard recommends buying the AUD, NZD and USD while selling the CAD, EUR and NOK.

Despite a fairly strong rally last week in the AUD and NZD, which gained nearly 1.8% and 1.5% respectively versus the USD, the scorecard recommends buying both currencies this week as all input factors with the exception of FX score have a bullish view on the two currencies.

The CAD also rallied last week and since the input factor of risk premiums favours a short position, the scorecard recommends selling CAD this week. Last week's sell-off in the EUR seems overdone according to the model. However, the euro is also included in this week's short basket as all input factors besides FX score suggest selling the currency. In particular, the technical outlook is negative for the euro, according to the model.

Last week's signals resulted in a 0.1% loss. In particular, the long NZD position performed well, while the short AUD was expensive.

Next scorecard signals will be sent out on 7 April.

To Read the Entire Report Please Click on the pdf File Below

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