This week, the scorecard recommends buying SEK, NZD, NOK while selling JPY, USD, EUR (see suggested weights in portfolio in table below).
The long basket this week includes the Scandies and NZD. The bet on a higher SEK this week derives mainly from its meagre performance last week- the same goes for NZD while NOK increasingly has positioning moving in its favour.
The short basket places a significant weight on JPY as not least positioning looks increasingly stretched - the risk premium component also weighs. The move higher in EUR/USD seen lately dragged down the overall EUR score despite decent technicals.
Last week's performance took the scorecard into the negative performance territory for a second week as the otherwise correct bet on weaker Scandies against CAD and GBP (viewing USD as benchmark) was outweighed by poor performance by AUD (long) and decent CHF (short) gains.
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