Flash: Short CAD/JPY best way to trade US crisis - Societe Generale

FXstreet.com (Barcelona) - In FX, playing a short position in CAD/JPY looks like the best way to trade ‘soft dollar, soft SPX', according to Kit Juckes, Head of FX at Societe Generale.

Key Quotes

"In 2011 and 2012 I argued frequently that this was the best ‘risk on' way to trade FX, buying the CAD rather than the dollar and selling the overpriced yen."

"The yen's fall between Q4 2012 and Q1 2013 has corrected some but not all of the long-term divergence, but the recent price action looks scary and if risk aversion increases, this cross can come badly unstuck."

"It's just drifted below its 200-day moving average, which means something to some folks."

Oct 8, 2013

EUR/AUD succeeds on pullback above 1.44 front

EUR/AUD jumped back above the previously violated support around the 1.4390 zone ahead of Australian data and all Asian markets opening on second day of the week.

Flash: keep buying EUR/USD dips until US agreement in place - Rabobank

While it may be counter-intuitive to buy the Euro as a safe-haven currency at times of risk aversion, especially with the EZ crisis still playing out on the sidelines, according to Jane Foley, FX Strategist at Rabobank, "it must be remembered that the USD’ s credentials are soured by its persistent (if improving) twins deficit and dysfunctional political system and the yen is still associated with the most indebted county in the world." As such, and since Foley expects no ECB policy changes this year, the Rabobank Strategist is looking to buy EUR/USD on dips "until a US agreement is in place" Foley said.