This via the folks over at eFX
TD FX Strategy Research notes that in-terms of current G10FX valuation, the convergence currencies (EUR, CAD and SEK) all looked stretched against the 1yma, especially as they approach multi-year highs.
Over the coming weeks, we think this group is most likely to correct on a squeeze in positioning and an upgrade to negative US news flow, with positioning skewed and US data inching higher," TD adds.
"Still, the evolution of a multi-year regime shift in FX will render these the best "buy on the dips" currencies in the G10," TD advises.
