FX: What To Buy And Sell
eFXnews | Oct 16, 2014 04:51AM ET
The following are the latest signals and trades generated and entered by Bank of New Zealand's (BNZ) Momentum FX Model.
BNZ's highlights on the model's positions are as follow:
Our model’s NZD short position has finally been closed out.
– Our model has finally been knocked out of its lucrative short position on NZD/USD by the recent whippy price action. The trade returned 7.9% over the course of three months (entered on 18 July).
– The picture on the crosses also looks decidedly more mixed. The NZD/GBP short position has been neutralised, and returns on the NZD/EUR short position have been pared. The NZD/JPY short position has benefited from the risk-negative market sentiment.
Market volatility has put paid to the wholesale ‘buy USD’ view our model was taking.
– In the past week, the model has been knocked out of its long USD positions against the EUR and the CHF. The US Dollar Index has also been assigned a neutral rating.
– The retracement in JPY has been particularly sharp, helped by risk-off market sentiment. From having been trenchantly short JPY, the model is now long JPY against the USD and AUD.
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