RBC Capital Markets 2016 FX Forecasts

Home / EUR SEK / RBC Capital Markets 2016 FX Forecasts FORECAST

RBC Capital Markets, the Canadian investment bank is out with 2016 forecasts.
They recommend Long USD/JPY, USD/CAD.
They also expect GBP vol to rise and see opportunity in short EUR/SEK

“We still like long USD and our favourite way to express that is through long USD/JPY.

We still look for USD/CAD to make new highs in 2016, but for the first time in four years, we are net long CAD in our trade recommendations, expressed through CAD-crosses (short EUR/CAD and short AUD/CAD, only partly offset in EMFX by short CAD/MXN).

In vol space, we have two trades. Firstly, although we remain constructive on GBP, we recognise growing risks and expect GBP vol to rise on a relative basis as a result. We also use relative vol to express our view that FX markets ultimately break back out of the World of One Trade that they re-entered in mid-2015. Finally we have short EUR/SEK as a trade to watch.”

Recent Posts