MUFG trade of the week: Long USD/PLN
Mitsubushi has a zloty trade but the rational extends beyond it
MUFG recommends buying USD/PLN at 3.9500 with a target of 4.0400 and a stop at 3.9200.
"We are recommending a long USD/PLN trade idea to reflect the increased risk of a correction higher for the USD. Our QI RSU models have been signalling that the USD has become heavily oversold in recent weeks. The souring of investor sentiment over the past week is creating a more-favourable environment for the USD to rebound," they wrote.
"PLN has been one of the best performers against the USD over the past month, having strengthened by around 7%. Those gains would be vulnerable if the USD rebounds more broadly," they write.