This week the scorecard recommends buying the NOK, USD and AUD, while selling the SEK, EUR and CAD.
Last week's sell-off in the NOK seems overdone according to the model and thus the Scorecard recommends being long NOK this week. The technical indicator and the input factor for interest rates also favour a long NOK position, albeit not significantly.
The SEK performed relatively well last week and since the rally seems a bit overdone and most other input factors also favour being short SEK, the Scorecard recommends selling SEK this week. Despite a strong sell-off last week, the scorecard recommends selling EUR this week as all input factors other than the FX score favour buying EUR. Notably, euro-zone interest rates currently underperform (lower rates) among G10, according to the model, but also the technical indicator and the input factor from option market risk premiums have a negative view on the euro.
Last week's signals resulted in a 0.1% gain. Especially the short NOK position performed while the long GBP and CHF positions were expensive. Year to date, the Scorecard model has generated a total profit of 4.1%.
Next scorecard signals will be sent out on 26 May.
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