Forex – What I Like / Dislike 01.25.13
Will be on CNBC Street Signs this morning and wanted to give you a sneak peek of my notes:
I like EUR and AUD
For EUR:
- All of $ that was parked in Switzerland and U.K. for safety and now its coming back
- Strong German data means IMF and others could be underestimating EZ growth
- ECB begins taking back liquidity with LTRO repayments
AUD
- Sharp move lower not warranted
- Chinese data consistently surprising to upside
- RBA will leave rates on hold
I dislike
GBP
- Triple Dip Recession Risks
- Investors and central banks dumping GBP
- Talk of EU Referendum weighing on currency
JPY
- BoJ Easing, need I say more?
- Yen weakness not helping trade much give territorial dispute with China
- Strong uptrend, keep buying USD/JPY on dips (or selling yen on rallies, depends how you want to say it)
- Incoming BoJ Gov in April could speed up open ended asset purchases
