FX Convictions – Close short GBP/JPY call

by: Roy Teo

DISCLAIMER: This report has not been prepared in accordance with the legal requirements designed to promote the independence of
investment research, and that it is not subject to any prohibition on dealing ahead. This report is marketing communication and not investment
research and is intended for professional and eligible clients only.

  • We have taken short GBP/JPY off our conviction list…
  • …as our profit protection level of 132 was triggered…
  • …with a gain of 6% since initiation on 19 July
  • We keep HUF long versus EUR, long NOK versus EUR on our conviction list
160818-FX-Conviction-Close-short-GBPJPY-call-1.pdf (62 KB)
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Close short GBP/JPY position; profit protection at 132 triggered

Our GBP/JPY stop loss (profit protection) at 132 has been triggered. Better than expected UK
data (inflation, employment and retail sales) triggered a recovery in the GBP from below 1.29
to above 1.31 against the USD. Since initiation on 19 July, our bearish view on GBP/JPY has
yielded almost 6%.

We keep in place our HUF long versus EUR and NOK long versus EUR

We keep our HUF long versus EUR and NOK long versus EUR in place on our high conviction
list. For more details please refer to our FX Convictions – Add HUF long versus EUR, FX Convictions – Positive on Norwegian Krone.

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