Cross FX signals from Bank of America
Bank of America Global Research outlines the latest signals from its FX Scorecard.
"By magnitude of signal, our strongest cross trade is long CADCHF (+9), followed by short EURCAD (-8). Both of these are pro-risk trades. Notably, both are also highly correlated to energy (emphasis: oil) prices (Exhibit 3, Exhibit 4)," BofA notes.
"From a terms of trade perspective, Canada benefits from higher energy prices due to its status as an energy exporter, whereas economic effects for Europe are negative," BofA adds.
For bank trade ideas, check out eFX Plus.
