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FX Scorecard: Long NZD, EUR, JPY Versus Short CAD, SEK, NOK‏

ByDanske Markets
Published 01/06/2014, 06:19 AM
Updated 05/14/2017, 06:45 AM
USD/CAD
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This week the scorecard recommends buying the NZD, EUR, JPY while selling the CAD, SEK, NOK.

The NZD was last week's top-performer among G10 and even though the currency's score has a significant negative drag due to last week's performance (FX score), all other indicators still point towards strong support. Hence, for the fourth consecutive week the scorecard recommends buying the NZD. Last week's EUR sell-off seems overdone according to the model and the scorecard recommends buying EUR this week, even though all other input factors besides FX score point in the other direction.

The short basket this week mainly includes CAD. Besides a move lower in the USD/CAD spot (CAD negative), the risk premium input factor also favours being short CAD this week. The short basket also includes the two Scandinavian currencies, NOK and SEK, as all indicators besides FX score currently favour selling both currencies.

The scorecard model got off to a good start in the new year as last week's signals resulted in a 1.9% gain, the highest weekly return the model has ever achieved since going live in October 2010, more than exceeding last week's loss of 1.4%.

Next scorecard signals will be sent out on 13 January.

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

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