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12 Mar 2014
Flash: A look at 2014 so far - BAML
FXStreet (Guatemala) - Naeem Wahid, FX Strategist at Bank of America Merrill Lynch commented by an analysis on their trading portfolio, examining current tactical trades, year-ahead trades, and long-term trades that they had recommended.
Key Quotes
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“So far, 2014 has been marked by an unwind of the consensus bullish USD trade that emerged at the end of last year. With positioning now lighter (long USD positions reduced by around 30%, against G10 currencies), we reiterate our bullish USD view, best expressed against JPY as a calendar spread."
"We have been outright GBP bulls throughout 1Q, but have now temporarily reversed short in GBP/USD. Other GBP crosses are also breaking lower, as real-money overweight GBP positions become extended and are at risk of being reduced."
"Finally, we hold a bearish stance in CHF while, within the volatility space, we expect AUD/JPY volatility to rise over the summer. "
Key Quotes
.
“So far, 2014 has been marked by an unwind of the consensus bullish USD trade that emerged at the end of last year. With positioning now lighter (long USD positions reduced by around 30%, against G10 currencies), we reiterate our bullish USD view, best expressed against JPY as a calendar spread."
"We have been outright GBP bulls throughout 1Q, but have now temporarily reversed short in GBP/USD. Other GBP crosses are also breaking lower, as real-money overweight GBP positions become extended and are at risk of being reduced."
"Finally, we hold a bearish stance in CHF while, within the volatility space, we expect AUD/JPY volatility to rise over the summer. "