The following are UBS' latest short-term (mostly intraday) trading strategies for EUR/USD, USD/JPY, and GBP/USD.
EUR/USD: traded bid last week and ended with a short squeeze. Flows were mixed but demand improved as the weekend got closer so it seems that the market is happy to play the pair from the short side, although conviction is low. All eyes are on the FOMC meeting this week, and activity could be limited until then.
USD/JPY: The BoJ rate decision tomorrow will likely be non-event. The bigger event will be the FOMC meeting on Thursday, and the market is pricing in only a 25% of a rate hike. Ahead of the FOMC meeting activity is likely to be limited, and USDJPY has been trading in line with risk. Equities in Asia have started the week in the red, so look to pay the pair from the short side today.
GBP/USD: Cable has found good support around the 200-day moving average and with the positive tone from the BoE last week, this bounce should continue. This is a busy week for data, with CPI, earnings, unemployment, and retail sales due. Buy dips, with a stop below 1.5350, for a test of 1.5500 and 1.5550.
