08 SEP 2013 15:26 EDT By eFXnews.com
Investors following short-term macro strategies should consider selling GBP/USD, and buying AUD/USD this week, advises Barclays Capital in its weekly FX pick to clients.
On the GBP/USD trade, Barclays' rationale is as follows:
"Our surprise index is in extreme positive territory, so the positive momentum which has driven GBP strength is likely to slow. Given crowded positioning in short-sterling contracts and recent price action, we would tactically look for some downside versus the USD," Barclays says.
"UK labour market data will be the most important event for GBP next week (Weds). The BoE has directed the market to look through the recent improvements in data, since they expect the unemployment rate to be sticky (as do we, beyond this month). Governor Mark Carney will also speak in front of the Treasury Select Committee on Friday," Barclays adds.
On the long AUD/USD trade, Barclays' rationale is as follows:
"Our economists expect the recent rebound in Chinese data on trade, industrial production and investment activity to have rolled into August, supporting the AUD." Barclays projects.
Investors following short-term macro strategies should consider selling GBP/USD, and buying AUD/USD this week, advises Barclays Capital in its weekly FX pick to clients.
On the GBP/USD trade, Barclays' rationale is as follows:
"Our surprise index is in extreme positive territory, so the positive momentum which has driven GBP strength is likely to slow. Given crowded positioning in short-sterling contracts and recent price action, we would tactically look for some downside versus the USD," Barclays says.
"UK labour market data will be the most important event for GBP next week (Weds). The BoE has directed the market to look through the recent improvements in data, since they expect the unemployment rate to be sticky (as do we, beyond this month). Governor Mark Carney will also speak in front of the Treasury Select Committee on Friday," Barclays adds.
On the long AUD/USD trade, Barclays' rationale is as follows:
"Our economists expect the recent rebound in Chinese data on trade, industrial production and investment activity to have rolled into August, supporting the AUD." Barclays projects.
Copyright © 2013 eFXnews
No comments:
Post a Comment