This week the scorecard recommends buying the CAD, USD and EUR while selling the SEK, JPY and AUD.
Most input factors currently favour being long CAD and following last week's sell-off, the scorecard recommends buying the CAD this week. The USD was also under pressure last week and declined against all G10 currencies with the exception of the AUD. The model indicates that last week's decline in the USD is overdone and thus recommends buying USD this week.
Last week's rally in SEK seems overdone according to the model and the scorecard recommends selling SEK this week. Besides the negative impact from the FX score, the interest rates input factor also favours being short SEK. The short basket this week also includes JPY and AUD. While most input factors favour selling JPY, all input factors besides the FX score have a strong negative signal on the AUD and thus the scorecard recommends selling AUD this week despite last week's significant sell-off.
Last week's signals resulted in a 0.6% gain. In particular, the long SEK position performed well, while the short JPY and CHF positions cost somewhat.
Next scorecard signals will be sent out on 10 March.
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