Forex – What I Like / Dislike 01.25.13

Will be on CNBC Street Signs this morning and wanted to give you a sneak peek of my notes:

I like EUR and AUD

For EUR:
-- All of $ that was parked in Switzerland and U.K. for safety and now its coming back
-- Strong German data means IMF and others could be underestimating EZ growth
-- ECB begins taking back liquidity with LTRO repayments

-- Sharp move lower not warranted
-- Chinese data consistently surprising to upside
-- RBA will leave rates on hold

I dislike

-- Triple Dip Recession Risks
-- Investors and central banks dumping GBP
-- Talk of EU Referendum weighing on currency

-- BoJ Easing, need I say more?
-- Yen weakness not helping trade much give territorial dispute with China
-- Strong uptrend, keep buying USD/JPY on dips (or selling yen on rallies, depends how you want to say it)
-- Incoming BoJ Gov in April could speed up open ended asset purchases

British Pound CNBC eur/usd forex blog Japanese Yen Kathy Lien

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