Which FX Pairs To Buy And Sell
Gregor Horvat | Jul 11, 2013 10:44AM ET
The Japanese yen is the strongest currency following the Bernanke speech Wednesday while commodity currencies are the weakest.The reason for the strong JPY is higher US bonds/lower yields. On the overlay chart we can see that best market to sell is the AUD/JPY while the best pairs to buy in risk-on environment is EUR/USD or GBP/USD and even some EUR and GBP crosses.
Based on market correlations below -- and the S&P futures count -- we may see more USD selling in the near-term. S&P is showing incomplete bullish impulse with current pause in wave four from where prices may rally up in five toward 1675 today.
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