Citi thinks USD/JPY is near a top
Credit Agricole CIB Research likes long exposures in AUD and NZD against EUR and JPY.
"The Antipodean currencies will experience a super-fast cycle rather than a super-long cycle, which means they are unlikely to reach the heights of the post-GFC era. Unlike the period following the GFC, China is not recovering much faster than the US...And, while FOMC officials will continue to push back against any idea of a tapering of its asset purchases in 2021, high vaccination rates and fiscal stimulus in the US mean tapering could occur in 2022," CACIB notes.
"The best way to take advantage of the friendly environment for the Antipodean currencies is to buy them against funding currencies such as the EUR and JPY rather than the USD," CACIB adds.
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