Free Trial

Westpac's G10 FX Model lightens "USD longs....>

FOREX
FOREX: Westpac's G10 FX Model lightens "USD longs yet further, to +15%. That
puts the model's long USD exposure on the smaller side of the +10% to +40% range
it has been for most of this year. The growth in USD yield support (i.e.
momentum) has been stalling out, weighing on both our total yield and short term
macro based logit signals for the USD. That said the model retains a risk averse
posture; opening a 6% EUR long as oil prices continue to firm and risk premia
edge higher across global markets, and the model remains long JPY (+12%) too. In
the dollar bloc; NZD is deeply out of favour (-26% of the portfolio), a major
deterioration in our NZD total yield signal after last week's RBNZ the main
catalyst. Renewed firming in BoC hike odds after Governor Poloz spoke last week
encourages the model to wade its toes back into CAD longs (+11% of the
portfolio)."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.