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14 May 2015
Credit Agricole: Shift in USD positioning not a turning point – eFXnews
FXStreet (Barcelona) - The eFXnews Team notes Credit Agricole suggests that the recent pause might be a precursor to a more significant shift in FX markets.
Key Quotes
“With last week’s labour, and now retail sales data unable to provide the US economic clarity many FX investors seek, currency markets will likely continue their confused trade today as investors search for additional Fed policy clues.”
“Indeed USD positioning may merely be going through an inflexion, rather than turning point before the reality of future Fed tightening begins to bite. If this proves the case in coming weeks, the spectre of higher US rates (and stronger USD) make an attractive case for buying break-out volatility strategies.”
“In this respect our FX Vol Radar highlights a number of attractive 3 month Butterfly opportunities with AUD/NZD the standout in G10. Moreover those that feel they may have ‘missed the boat’ on USD/JPY might consider SGD/JPY.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“With last week’s labour, and now retail sales data unable to provide the US economic clarity many FX investors seek, currency markets will likely continue their confused trade today as investors search for additional Fed policy clues.”
“Indeed USD positioning may merely be going through an inflexion, rather than turning point before the reality of future Fed tightening begins to bite. If this proves the case in coming weeks, the spectre of higher US rates (and stronger USD) make an attractive case for buying break-out volatility strategies.”
“In this respect our FX Vol Radar highlights a number of attractive 3 month Butterfly opportunities with AUD/NZD the standout in G10. Moreover those that feel they may have ‘missed the boat’ on USD/JPY might consider SGD/JPY.”
This content has been provided under specific arrangement with eFXnews.