GS: G10 FX
POSITIONING => With USD being bid back again across the board, we reinitiated USD longs positions in cash (vs EUR, CAD, GBP) in addition to the options exposure we already had vs EUR and CAD.
In case you missed it, GS Research revised down NFP forecasts to 210k from 250k.
{EU} Short EURUSD in Cash and Options => We maintain our core short and re-entered a cash short, while keeping some downside exposure via binaries. SL placed in the 1.1420 area but bear in mind the range we’ve been holding since Tuesday last week : 1.1250 vs 1.1600.
{CA} Long USDCAD in Cash and Options => The pair remains one of our favourite theme for Q1 despite Tuesday’s washout and we re-entered a new long cash positions in addition to our call spread. Next level on the topside are 1.2600 then 1.2644 (Tuesdays high) and you don’t want to see the pair back below 1.2490.
{GB} Short GBPUSD =>Impressive service PMI yesterday pushed the pair above 1.5235 but ultimately, attention will turn to the upcoming election. We maintain medium term bearish on GBP, with levels: resistance at 1.5251 (yest’s highs), support at 1.4988 (Tuesdays lows).
{JN} Flat USDJPY => Despite the USD being bid anywhere else, USDJPY remains relatively contained, a proof to the lack of positioning in the pair ahead of NFP. We remain cautious, and think ahead of NFP, we will continue to be trapped by the 116.50-118.50 range.