A daily FX update analyzing rangebound G10 markets amidst Middle East tensions and UK political flux. The author advocates for carry trades (AUD, NOK) funded by CHF and remains bearish on CAD due to economic divergence.
Key Takeaways
- 1.Markets are currently rangebound due to geopolitical uncertainty in the Middle East and upcoming diplomatic meetings (Trump-Xi and Bessent).
- 2.The report favors carry trade strategies, specifically using CHF as a funder for long positions in AUD and USD.
- 3.A bearish view is maintained on CAD following weak labor data, with a preference for shorting CAD against high-yielding currencies.
Table of Contents
- G10 FX
- EUR
- GBP
- JPY
- CHF
- AUD/NZD
- CAD
- NOK/SEK
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Authors
Laoise Ni Thighearnaigh
Securities
EURUSDUSDJPYGBPUSDBrent CrudeAUDCHFNOKSEK
Themes
Geopolitical StalemateCarry Trade ResilienceMonetary Policy Divergence
Regions
EuropeNorth AmericaAsia PacificUnited StatesUnited KingdomJapan