What is the outlook for the G-10 currencies?
Here is their view, courtesy of eFXdata:
Societie Generale Research discusses its latest views on G10FX. SocGen likes to be long AUD, SEK, CHF, JPY and short CAD, GBP, USD.
“In practical terms, we’d rather be short USD/CHF than long EUR/USD here. Less positioning and more protection. The Australian dollar has shrugged off a drop in consumer sentiment that follows the increase of infection rates and an inconsistent lockdown policy across the country. AUD/CAD, our favourite way of buying AUD, has continued to grind higher despite signs that Canada’s Covid strategy is better than elsewhere in the Americas,” SocGen notes.
“Short GBP/JPY and GBP/SEK in equal parts may look like trying to have my cake and eat it at the same time, but like both trades here. Sterling is doing well again on a risk-on morning as GBP/USD shorts are squeezed, but that has nothing to do with UK news at all,” SocGen adds.
For lots more FX trades from major banks, sign up to eFXplus
By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.
Share
