According to SEB’s FX-o-meters model, Long EUR/CAD, Long EUR/PLN, and Long USD/CAD are the 3 strongest quant signals this week.
“Among the three strongest trends this week two involves strengthening EUR and two weakening CAD.
Higher EUR/CAD is the strongest trend and the only one of the top three where the stretch is not already indicating a high risk for a correction. However, the vol-o-meter is quite high indicating higher than usual volatility.
Higher EUR/PLN is among the top three for a second straight week (+1.2% last week) but have now become quite stretched on the upside (stretch-o-meter at 2.3 stdev).
The third strongest trend is higher USD/CAD though this trends is also quite stretched already (stretch-o-meter at 2.0 st dev). Also the CAD trends are heavily dependent on a continued fall or at least not a recovery in the oil price. If entering one of these trends one should thus keep a keen eye on the oil price,” SEB clarifies.
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