The FAST FX model made 0.28% last week being long USD/CAD & short EUR/USD and EUR/JPY.
The model is selling EUR/USD and EUR/JPY again this week and is up 5.48% over the past year with a hit rate of 59%.
EUR/USD’s fair value fell from 1.1218 to 1.1181 due to a fall in the Eurozone-US box yield spread as well as a rise in the peripheral EGByield spread to Bunds, which was partly offset by a rise in the Eurozone-US short-term rates spread.EUR/USD remains more than 1.5 standard deviations overvalued. TheFAST FX model has triggered another short EUR/USD trade with a stop-loss of-2.45%&a take-profit level of 1.1181.
EUR/JPY’s fair value rose from 162.0900to 162.2288 due to a rise in the Eurozone-Japan short-term rates spread as well as the outperformance of Eurozone equities by Japan equities, which was partly offset by risesin the peripheral EGB yield spread to Bunds and the Eurozone-Japan commodities terms-of-trade ratio. EUR/JPYismore than 1.5 standard deviations overvalued. The FAST FX model has triggered a short EUR/JPY trade with a stop-loss of-1.47%&a take-profit level of 162.2288.
USD/CAD’s fair value increased from 1.3826 to 1.3892 due to rises in theUS-Canada short-term rates differential and energy prices as well as afall in global equities, which was partly offset by a fall in the US-Canadabox yield spread. While USD/CAD remains undervalued, undervaluation is now just short of triggering a buy trade
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!