Mitsubishi UFG with a pair of weekly picks
MUFG is out with its weekly commerce for the approaching week, together with a carryover from final week.
Up first is promoting GBP/NOK with a goal of 11.200 and a cease at 12.000.
“We’re recommending a brief GBP/NOK commerce concept. We nonetheless imagine that there’s scope for the GBP to weaken additional to cost in much more NO Deald Brexit danger. GBP weak point on teh again of Brexit fears are removed from as excessive as final summer time… A NOK rebound seems extra probably than a GBP rebound proper now,” they write.
In addition they keep a brief EUR/JPY commerce with a goal of 122.80 and a cease at 127.20.
“We’re sustaining our brief EUR/JPY commerce concept. We proceed to imagine that the EUR stays weak to a deeper correction decrease within the near-term. In keeping with our yield-based valuation mannequin, the EUR has turn into considerably overvalued. On the identical time, bullish sentiment and positioning has turn into excessive.. the JPY may gain advantage from heightened political uncertainty in Japan and the danger of a deeper correction for highly-valued US tech shares,” MUFG writes.