This week, the scorecard recommends buying AUD, NOK and CAD while selling CHF, GBP and EUR.
All input factors with the exception of FX inputs favour a long AUD position and for the fifth consecutive week, the scorecard recommends a long AUD this week. NOK was last week's worst-performing currency in the G10 sphere and last week's sell-off seems overdone according to the model. Thus, the scorecard recommends a long NOK position even though all other indicators currently point in the other direction.
GBP and CHF were among the best-performing currencies among G10 last week and the scorecard recommends being short GBP and CHF this week. In particular, the input factor for risk premiums favours a short GBP position while the positioning input factor favours being short both GBP and CHF.
Last week's signals resulted in a 1.1% gain. The long JPY and AUD positions and the short EUR position performed especially well.
Next scorecard signals will be sent out on 25 March.
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