Investing.com - Financial Markets Worldwide

Last Week's JPY Sell-Off May Have Been Overdone

ByDanske Markets
Published 12/31/2012, 03:10 AM
Updated 05/14/2017, 06:45 AM
OPIN
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This week, the scorecard recommends buying JPY, CAD, USD while selling SEK, AUD, GBP.

Last weeks' sell-off in JPY seems overdone according to the model, and again this week the model recommends a long JPY position. For the third consecutive week, the model also recommends buying CAD as interest rates and risk indicators currently favour a long CAD position.

Positioning for SEK is very negative and the interest rate indicator also favours a short SEK position this week. However, the model mainly recommends being short SEK as the Swedish Krona seems somewhat expensive following last week's rally. Australian rates underperform relative to G10 and the model recommends selling AUD this week. In addition to interest rates is a short AUD position also seeing support from the technical indicator and the indicator for option market positioning.

Last weeks' signals resulted in a 1.4% loss. Especially the long JPY and the short SEK position was expensive.

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

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