Great insights as always! May I follow up on your bullish view on CNHJPY: I get the bullish CNH part, but why against JPY? Isn’t CNHCHF or CNHUSD a better choice? Thanks 🙏
Hi, sorry not sure why I got the notification for this reply so late.
This pair has been chosen purely from the point of view that both are under the same global trade pressures but have chosen 2 entirely separate ways to deal with them
Bullish CNH on its own can surely be taken against the pairs you've chosen
I just think that Japan can't afford to let the JPY appreciate at all despite the rate hikes...their rate hikes will be constrained by their competitive position and the current account
Great insights as always! May I follow up on your bullish view on CNHJPY: I get the bullish CNH part, but why against JPY? Isn’t CNHCHF or CNHUSD a better choice? Thanks 🙏
Hi, sorry not sure why I got the notification for this reply so late.
This pair has been chosen purely from the point of view that both are under the same global trade pressures but have chosen 2 entirely separate ways to deal with them
Bullish CNH on its own can surely be taken against the pairs you've chosen
I just think that Japan can't afford to let the JPY appreciate at all despite the rate hikes...their rate hikes will be constrained by their competitive position and the current account
Other options are AUD, NZD
Do you think the unlimited credit demand is linked to foreign investing because of the high USD? If USD would weaken, than credit spreads could widen?