In a similar fashion to last week the screening of relative equity performance points to broad based USD demand. US equites (in USD terms) have underperformed all ROW equities we screen.
The stand out pair is USDNOK. The combination of strong relative outperformance of the OBX and very strong seasonality on trade date month end off a interesting trading opportunity. We look to fade any USDNOK weakness post Norges Bank heading into the month end as positioning combined with flow may cause an outsized move. There is also strong reversal signals on month end T+1. NOK bulls should be aware of these short term risk to either add to core risk or lighten post Norges Bank.
The remaining equity movement aligns with USD demand.
The 10 year average seasonality likewise point to strong USD demand on trade date month end. USD demand vs SEK, NOK, AUD, NZD and EUR all stand out.
The stand out pair is USDNOK. The combination of strong relative outperformance of the OBX and very strong seasonality on trade date month end off a interesting trading opportunity. We look to fade any USDNOK weakness post Norges Bank heading into the month end as positioning combined with flow may cause an outsized move. There is also strong reversal signals on month end T+1. NOK bulls should be aware of these short term risk to either add to core risk or lighten post Norges Bank.
The remaining equity movement aligns with USD demand.
The 10 year average seasonality likewise point to strong USD demand on trade date month end. USD demand vs SEK, NOK, AUD, NZD and EUR all stand out.
1. AccuTrade System:
tradingview.com/v/yDFPnb1J/
2. Signal Performance:
thedailyfx.com/performance/
3. We provide Free TradingView Premium and Essential Membership.
tradingview.com/v/yDFPnb1J/
2. Signal Performance:
thedailyfx.com/performance/
3. We provide Free TradingView Premium and Essential Membership.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
1. AccuTrade System:
tradingview.com/v/yDFPnb1J/
2. Signal Performance:
thedailyfx.com/performance/
3. We provide Free TradingView Premium and Essential Membership.
tradingview.com/v/yDFPnb1J/
2. Signal Performance:
thedailyfx.com/performance/
3. We provide Free TradingView Premium and Essential Membership.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.