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The currency markets a lot more difficult to gauge who really has but has -- a big week for currencies as traders await decisions on monetary policy from a number of central banks so.
How can you the investor take advantage of it we have -- -- -- who is numerous global head of G10 FX strategy.
The obvious trade in the past couple months is -- Short the yen it's going down because the government wanted to go down and then this will just have written it on the side of buildings on sixth avenue.
You say that's largely -- now.
I think we have had this big expectation effect has been building into the market.
Now we need to see the results so can this shift in policy really shift expectations -- way that generates new behavior -- And I think that remains -- not think we've had a very -- move already.
And I things can be difficult to break 95 in dollar yen without seeing -- and.
-- -- that's affect an and you look at the Japanese yen at the moment vs the US dollar but if we were to look at let's say six month chart which is it again continue to just tech.
Dick that's not going to happen anymore doesn't every action -- an equal and opposite reaction and if so where will we see that reaction go which currency looks good now to -- Was so I think obviously the dollar's had a quite strong run and suddenly relative to the Euro I think the dollar's gonna continue to perform very strongly.
Because there's a big growth differential.
Here is song is still in recession in the US has passed on his -- strong growth new line but close to 2%.
And that the French is grad -- gonna feed into Europe being -- evidence -- off.
And news and you look at the tall attorneys say well what's it's that the best thing going is that really saying that much or is it the best thing going.
Lately of course Bill Gross of Pimco has started to get very excited about the -- yen and -- -- and I'm sorry the peso and Mexican debt is.
You liked the peso as well to what is it about that right now that you -- makes it a long trade.
Was that I think there's two things we've we've -- a lot of different models and valuation really stands out as being consistently cheap on -- -- -- from -- is a very competitive currency so that's number one.
Number two is is growth is holding up quite well and in a world where growth is really in -- shortage most places that's a good signal those two factors make -- a listen to thank god.
And investors sitting out there in front of his -- TD Ameritrade account on his computer what is the best way to go long.
Was of this obviously next connect to shouldn't get involved when there on Mexican bonds on some Latin America bond funds -- -- can get Mexican peso exposures -- those views sort of ETF ways to do it.
The the old trade I wanna say a couple of years ago Aussie dollar.
It's got the commodity world -- behind it because that's a commodity nation with all kinds of natural resources.
Same with Canada yet.
I think is this bull run for commodities is potentially coming to an -- nothing is very insisting that we and -- quantity easing period here again and commodities and not really benefiting from it.
I think women lost leg of that multiyear phase -- for the Canadian dollar I think that's a problem.
And oil that they export its visited -- is it is very very.
Cheap relative to global oil price and that's a problem for Canada.
So I think dollar Canada has been turning around and I think the dollar could strengthen -- the Canadian dollar in the next couple of -- -- I talked to people and everywhere they say Alberta is just a booming economy because of the oil sands there they're still may be that market for what they have out there.
Yes so obviously the sex is still one of the driving forces but we also have to look of holly expensive as the currency rise and a lot of people thought I was crazy when dollar -- went to parity.
A couple of years ago are now -- gonna use that level but there's no reason we can trade back to where we came from okay.
-- the last thing here and you had a letter out saying watch out so we're looking for Euro 130 okay.
The Euro went up to 137.
That it comes down did you just missed that chance to -- it at 137.
Yet the only thing we did was we fund as someone emerging market trades in euros and those -- done well but he only had like ten and -- this you're not one that is better.
That is my point everybody got -- very careful in the currency markets but if you're audited and you're watching it.
You could make some real money -- to see you thank you very much against the norm figure is -- where it G10 FX strategy global that we'll see you next time.
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