3 Feb 2015
Opening a basket of commodity shorts - JPMorgan
FXStreet (Bali) - JP Morgan Securities has opened a basket of commodity shorts against a balanced basket of G3 currencies, anticipating easier policies in the months ahead by the RBNZ, RBA and BoC.
Key Quotes
"Commodity producers are at the current epicentre of the policy debate. There’s scope for RBNZ views to continue to soften; for the RBA to cut 50bps by midyear, possibly starting next week; and for the BoC to take out further insurance in March. We open a basket of commodity shorts against a balanced basket of G3 currencies, so short NZD/JPY (rolling from short NZD/USD), long EUR/AUD, and long USD/CAD."
Key Quotes
"Commodity producers are at the current epicentre of the policy debate. There’s scope for RBNZ views to continue to soften; for the RBA to cut 50bps by midyear, possibly starting next week; and for the BoC to take out further insurance in March. We open a basket of commodity shorts against a balanced basket of G3 currencies, so short NZD/JPY (rolling from short NZD/USD), long EUR/AUD, and long USD/CAD."