TD FX Strategy Research notes that USD is now running well below the level implied by rate spreads, so the risk/reward favors further upside into the rest of the week in rate sensitive currencies like EUR and JPY.
For the EUR/USD, TD notes that its now running nearly two-sigmas above its implied level from cyclical drivers, increasing the prospects for a short squeeze.
Regarding USD/JPY, TD likes selling ahead of 113.31 as a hedge for skittish equity markets, especially in May.
EUR/USD is trading circa and USD/JPY is trading circa
Source: TD Securities Research
The article is published by one of the foremost sources of Forex trading information. Link to the original article above.
from Online Forex Trading Resource
View thesource article here