OctaFX | OctaFX Forex Broker
Open trading account

Forex Flash – JP Morgan adjusting trades due to correlation back in play

FXstreet.com (London) - Due to the changes and shifts in global markets of late, the dollar has taken stage and in the interim, JP Morgan have suggested that a lot of cyclical weakness which has characterized 2013 is likely to reverse. They are adjusting trades this week but not forecasts. They have been short USD versus KRW and CNY, so say they are rolling the long KRW into JPY funding and taking profits on USD/CNY. Also switching long MXN from USD to JPY funding. Keeping short JPY basket vs USD and the commodity currencies. They said that other longs in commodity currencies were too concentrated against USD, but since they were cheap option trades with several weeks to expiry, they hold these positions. Lastly, they say they are adding selective USD longs vs CAD, since the latter is the most expensive major currency on short-term fair value models.

Forex: USD/CHF holds above 0.9545

The dollar entered in a consolidation phase against the Swissy, as investors take a breather after last week's steep gains, ahead of US Apr retail sales data.
Read more Previous

US: Retail Sales (MoM) rise 0.1% in Apr; ex Autos fall 0.1%

Read more Next
Start livechat