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24 Feb 2015
FX Macro trade recommendations – JPM
FXStreet (Barcelona) - The J.P.Morgan Team shares the macro trade recommendations reflecting FX regimes where central bank policies will be in focus in coming weeks.
Key Quotes
“While our base case is that Denmark will continue to defend its peg with EUR, the intensity with which the DNB has had to intervene in FX markets is surprising and suggestive of ongoing pressure. Sell EUR/DKK 3- months forward.”
“The PBoC will likely allow further RMB weakness in the near-term. Buy USD/TWD 3-months forward to position for the spillover impact in a carry efficient way.”
“Stay short commodity currencies via long EUR/AUD and long GBP/NOK.”
“New trades: Short EUR/DKK and long USD/TWD both via 3-month forwards.”
“Existing trades: Hold long EUR/AUD and GBP/NOK in spot. Stay long 2-mo USD/SEK bearish riskreversal and short EUR/CZK (6-mo 1x2 spread).”
Key Quotes
“While our base case is that Denmark will continue to defend its peg with EUR, the intensity with which the DNB has had to intervene in FX markets is surprising and suggestive of ongoing pressure. Sell EUR/DKK 3- months forward.”
“The PBoC will likely allow further RMB weakness in the near-term. Buy USD/TWD 3-months forward to position for the spillover impact in a carry efficient way.”
“Stay short commodity currencies via long EUR/AUD and long GBP/NOK.”
“New trades: Short EUR/DKK and long USD/TWD both via 3-month forwards.”
“Existing trades: Hold long EUR/AUD and GBP/NOK in spot. Stay long 2-mo USD/SEK bearish riskreversal and short EUR/CZK (6-mo 1x2 spread).”