J.P. Morgan's G10 FX daily update highlights broad USD strength driven by resilient US data, while favoring shorts in CHF and CAD due to inflation and growth divergences. Market participants remain focused on upcoming NFP data and geopolitical risks in the Middle East.
Key Takeaways
- 1.The US Dollar (Greenback) maintains a bullish trend supported by solid US data, with the market awaiting Non-Farm Payroll (NFP) figures for direction on the June 17th Fed communique.
- 2.A bearish view on CHF persists as Swiss inflation aligns with SNB forecasts, keeping carry pinned at 0% while USDCHF trades above its 200-day moving average.
- 3.Short CAD positions are favored as USDCAD breaks above 1.3900, driven by an expected economic divergence between a resilient US labor market and a softer Canadian economy.
Table of Contents
- G10 FX
- JPY
- CHF
- AUDNZD
- USDCAD
- NOKSEK
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Authors
Laoise Ni Thighearnaigh
Securities
USDCHFUSDCADAUDNZDEURGBPNOKSEK
Themes
US Labor Market Resilience vs Global DivergenceCentral Bank Policy Normalization Divergence
Regions
North AmericaEuropeAsia PacificUnited StatesJapanSwitzerland