partial switch from short EUR/USD to short NZD/USD (from 19-Dec to 27-Dec)
Stopped out of short EUR/USD on 20-Dec, stopped out of short NZD/USD on 27-Dec
Real-Time AmpGFX – partial switch from short EUR to short NZD (Tue 19/12/2017 10:00 AM MT)
Sold half unit NZD/USD at 0.6982
Bought half unit EUR/USD at 1.1817
Comment
US and global yields have risen significantly on Tuesday, US 10 yr yields up 5.5bp, German yields up 7.0bp. Higher global yields will tend to reduce the NZD yield advantage and may see some correction in high beta currencies, of which NZD might still be considered one. NZ business survey bounce was quite disappointing, although other recent data has been stronger than expected, in-line with the global trend.
The cross-currency basis swaps for major currencies has also narrowed significantly in recent days, reducing the chances of a dollar funding squeeze that might trigger a correction in EUR/USD lower.
Positions
Long a half unit of an XBT derivative at $10,600 (Bitcoin tracker ETN) – no orders
Short half unit EUR/USD at 1.1775; s/l 1.1893; t/p 1.1528
Short half unit NZD/USD at 0.6982; s/l 0.7043; t/p 0.6828