This week, the scorecard recommends buying EUR, JPY, NZD while selling GBP, CAD, CHF.
Despite last week's rise in EUR/USD, the scorecard recommends buying EUR this week. In particular, the increase in the front end of the EUR yield curve is positive for EUR but in fact all input factors with the exception of FX currently favour a long EUR position. Last week's JPY sell-off looks overdone according to the model and the scorecard recommends being long this week even though most input factors point in the opposite direction.
CAD was the worst performing currency in the G10 sphere last week (from 18 January to 25 January). However, the scorecard recommends being short again this week as all input factors other than FX favour a short CAD position.
Last week's signals resulted in a 1.5% gain as all positions with the exception of the long CAD position delivered a positive return.Next scorecard signals will be sent out on 4 February.
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