Free Trial

Westpac's G10 FX model makes "a noteworthy....>

FOREX
FOREX: Westpac's G10 FX model makes "a noteworthy leap in AUD and CAD longs.
Admittedly the model has flirted with AUD longs several times in the last 2.5
years but the exposure was always very small and never lasted more than a week
or two. The "core" position has been generally short, but this week's 10% AUD
long is the most meaningful long exposure to AUD since Feb 2017. Our total yield
signal has flipped AUD positive as has our short term macro momentum signal
(logit probability). AUD-USD yield spreads remain stuck in the mud, but AUD
yields have risen lately vs broader G10 averages. Persistent firming in iron ore
prices have also played into the more constructive AUD stance. A similar dynamic
tips the model into a decent sized CAD long too. Elsewhere, SEK remains deeply
out of favour and the model trims its USD and JPY longs slightly."
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.