The following are UBS' latest short-term trading strategies for EUR/USD, USD/JPY, and NZD/USD.
EUR/USD: US dollar weakness turned around yesterday after remarks from Janet Yellen about the likelihood of a rate hike later this year. EURUSD has come off hard on the back of that, and we prefer selling rallies to 1.1190, with a stop above 1.1240.
USD/JPY: With Janet Yellen suggesting a rate hike is likely this year, Japanese core CPI declining in August, and a relief rally in equities, we see reasons to buy USDJPY. Unless the risk environment changes drastically, we recommend buying intraday dips closer to 120.00, with a stop below 119.70.
NZD/USD: has been consolidating, but risk remains to the downside. Sell the pair around 0.6360/80, with a stop above 0.6400, targeting a move down to 0.6240.