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