The Rise & Rise Of Carry: What's The Trade? – SocGen

Societe Generale FX Strategy Research argues that FX carry trades look attractive to buy in the near to medium term. In particular, SocGen points to long CAD/JPY, AUD/JPY, NZD/JPY and EUR/JPY. 

However, with OPEC making all the right noises, SocGen prefers long CAD/JPY on the ground that it looks lagging oil prices,priced for BOC to remain on hold for a long time and for Canadian growth data to remain soft.

“The risk is that OPEC fail to support prices, but even if we don’t expect a sharp rally they should be able to put a floor under price around here.

CAD/JPY should get back to 85-86,” SocGen argues.

CAD/JPY is trading circa 83.19 as of writing. 

Source: Societe Generale Cross Asset Research

The article is published by one of the foremost sources of Forex trading information. Link to the original article above.

from eFXNews

from Online Forex Trading Resource
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