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4 Apr 2014
Time to get back to USD long positions - Nomura
FXStreet (Bali) - Nomura FX Strategists think it is time to get back to USD longs, thus it is now recommending USD long positions against a basket of currencies including EUR and JPY.
Key Quotes
"1: There is evidence that the data picture is improving as Q2 approaches. 2: The FOMC is unwilling to change forward guidance in a concrete manner, and this suggests that positive data surprises have more potential to feed into rate moves, including in the shorter end. 3: The entry point looks very attractive. 4: Positioning on the dollar is substantially more neutral. 5: Global flows could be on the mend."
"To express our USD bullish view, we recommend USD long positions against a basket of currencies including EUR and JPY. Specifically, we recommend buying USD against the equally-weighted basket of seven currencies (EUR, CHF, SEK, JPY, AUD, CLP, and MYR)."
"We initiate spending $10mn within our $100mn model portfolio, with a stop at a 3.0% loss on the position. We are also considering adding USD long exposures via specific crosses, such as a USDJPY going forward, and even a EURUSD if our flow signal points to a more decisive change."
Key Quotes
"1: There is evidence that the data picture is improving as Q2 approaches. 2: The FOMC is unwilling to change forward guidance in a concrete manner, and this suggests that positive data surprises have more potential to feed into rate moves, including in the shorter end. 3: The entry point looks very attractive. 4: Positioning on the dollar is substantially more neutral. 5: Global flows could be on the mend."
"To express our USD bullish view, we recommend USD long positions against a basket of currencies including EUR and JPY. Specifically, we recommend buying USD against the equally-weighted basket of seven currencies (EUR, CHF, SEK, JPY, AUD, CLP, and MYR)."
"We initiate spending $10mn within our $100mn model portfolio, with a stop at a 3.0% loss on the position. We are also considering adding USD long exposures via specific crosses, such as a USDJPY going forward, and even a EURUSD if our flow signal points to a more decisive change."