From the FXWW Chatroom – My top 3 G10FX trades in 2016: The first is short GBP/JPY, on valuation and Brexit risks though Monday will be more about UK PMI data. Another is short NZD/CAD but that one needs oil prices to stop falling, and needs the focus to return to the downside risks to the Chinese economy. The Chinese PMI released on Jan 1 were better, marginally so for manufacturing and more impressively for non-manufacturing. A slow-burner, this trade. My third favourite trade is short CHF/SEK. A very expensive current account surplus versus a cheaper one, with two central banks who are both trying to resist currency strength.
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