Investing.com - Financial Markets Worldwide

FX Financial Scorecard: Long AUD, CAD, NZD VS Short CHF, EUR, JPY‏

ByDanske Markets
Published 01/13/2014, 08:24 AM
Updated 05/14/2017, 06:45 AM
USD/JPY
-0.13%

This week the scorecard recommends buying AUD, CAD and NZD while selling CHF, EUR and JPY.

All input factors with the exception of FX score currently favour being long AUD and NZD and, for the fifth consecutive week, the scorecard recommends buying both AUD and NZD this week. In particular, interest rates and the technical input factor favour buying AUD while support to the NZD mainly comes from the positioning input factor. Last week's sell-off in CAD seems overdone according to the model and the scorecard recommends buying CAD this week, even though all input factors besides FX score still point in the other direction.

The short basket this week mainly includes EUR and CHF. Besides some appreciation against the USD last week which gives a negative contribution to total score from the FX input factor, only the technical input factor currently has a significant negative view on EUR and CHF. Finally, the short basket this week also includes JPY following last week's gain versus USD (FX score) and last week's increase in 1M USD/JPY risk reversal (positioning input factor).

Last week's signals resulted in a 1.5% gain. In particular, the short CAD position performed well, while the short SEK and NOK positions cost a bit. Hence, again this week, the scorecard delivered a solid return and year-to-date the scorecard has now returned a gain of 3.4%.

Next scorecard signals will be sent out on 20 January.

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

Latest comments

Loading next article…
Install Our App
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.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.