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Weekly FX Chartbook: ECB and Bank of Canada likely to cut rates

Forex 5 minutes to read
Charu Chanana 400x400
Charu Chanana

Head of FX Strategy

Key points:

  • USD: Two-way risks, but asymmetry persists with upside limited
  • EUR: Hawkish ECB rate cut on the radar
  • JPY: Mexico and India election outcomes could fuel more carry trades
  • CAD: BOC rate cut is not fully priced in
  • CHF: Inflation upside could prompt FX selling
3_FX_Weekly
CHFJPY was the FX play for the last week as SNB hinted at FX-driven upside pressures to inflation could prompt FX selling, while JPY remains the preferred funding currency in carry trades. Disclaimer: Past performance does not guarantee future performance.
3_FX_Momentum
Our FX Scorecard shows momentum in Silver may be weakening after strong gains last month.
3_FX_Positioning
Forex COT to the week of May 28 saw dollar longs pared for a fifth consecutive week. Fresh longs were added further to EUR and GBP while shorts were covered in AUD and CAD. NZD positioning turned to a net long from a short, while shorts were added in JPY and CHF.
3_FX_Views

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