Some trade ideas from SocGen
SocGen currency analyst Kit Juckes today highlighted the second 'micro adjustment' in Chinese monetary policy today. He thinks that could eventually underpin a rise in the yuan to 7.25 in what will be a trade risk.
For now, he's generally waiting and watching the news:
The Chinese news reinforces my belief that CAD is a better buy than either AUD or NZD, and GBP/NZD longs are worthwhile too. But for the euro, a modest lift from better PMI data is perhaps all we can expect. A change of heart on fiscal policy would be a massive gamechanger, which would send me flying into long SEK trades, as well as EURD ones, ut the chances of it happening remain remote. We're staying short EUR/JPY watching USD/JPY test the upper end of the current range, yet again.
With today's negative news about Chinese-US trade, it's an opportunity to get in at better levels (or to have a re-think).
