MUFG trade of the coming week: Sell RUB/USD, stay short USD/CHF

Author: Adam Button | Category: News

Weekly FX picks from Mitsubishi UFG

Weekly FX picks from Mitsubishi UFG
MUFG recommends selling USD/RUB with a target of 74.200 and a stop at 79.900. The firm also maintains a short USD/CHF position with a target of 0.8650 and a stop at 0.9250.

"We are recommending a short USD/RUB trade idea to reflect our view that the RUB remains significantly undervalued leaving scope for further upside after recent gains. Risk sentiment towards emerging markets is improving more broadly following the US election results and Pfizer vaccine news. It could continue to provide a positive tailwind for the RUB," MUFG notes.

"We are maintaining a short USD/CHF trade idea to reflect our expectations that the USD is likely to weaken further following the election result. the trade idea got off to a bad start after the Pfizer vaccine news triggered a heavy selloff for safe havens of the CHF and JPY. USD/CHF has tested and held key support at the 0.9000-level for now," MUFG adds.

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