Currency investors should consider selling the USD versus an equally weighted basket of JPY, EUR, and GBP this week, advises Barclays Capital in its weekly FX pick to clients.
"We target 2% appreciation of the JPY, EUR and GBP equally weighted basket versus the USD, with a stop-loss of 1%," Barclays advises.
"While we retain our broadly bullish USD view for this year, impending US political risk may lead to some near-term USD consolidation against major currencies. The relatively light agenda for the JPY, EUR, and GBP make them three likely candidates for investors to reduce long dollar positions. Moreover, all three currencies were indicated among the favourite short among the respondents of the Global Macro Survey. Hence, we are able to take an anti-“consensus” view.
We recommend avoiding short USD positions against CAD, AUD, and NZD, however, as they are more exposed to Trump’s protectionist measures," Barclays says as a rationale behind this call.
Copyright © 2017 Barclays Capital, eFXnews™Original Article
