Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

FX Scorecard: Long NOK, AUD, CHF Versus Short JPY, CAD, GBP‏

Published 06/16/2014, 06:16 AM
Updated 05/14/2017, 06:45 AM

This week the scorecard recommends buying NOK, AUD and CHF while selling JPY, CAD and GBP.

Last week's sell-off in NOK seems overdone according to the model and thus the scorecard recommends buying NOK this week. The scorecard also recommends buying AUD as both the technical input factor and the input factors for risk premiums and option market positioning have a constructive view on the AUD. Finally, the long basket this week includes CHF as last week's sell-off seems overdone according to the model.

All input factors currently favour being short JPY and thus the scorecard recommends selling JPY this week. In particular, the input factor for option market positioning has a negative view on JPY following the past week's increase in 1M USD/JPY 25 delta risk reversal. The short basket this week also includes CAD as all input factors currently have a negative view on CAD. The scorecard also recommends selling GBP this week following the strong rally last week. In particular, the risk premium input factor has a negative view on GBP following last week's spike higher in 1M GBP/USD implied volatility while the input factor for interest rates still favours being long GBP.

Last week's signals resulted in a 0.5% gain. Year to date, the scorecard model has generated a total profit of 4.8%.

Next scorecard signals will be sent out on 23 June.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.