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It’s Hard to Find Much to Be Bullish About: FX Macro Ranking

(Bloomberg) — While it’s easy to find funding currencies, higher U.S. yields equate to very negative momentum for all of the strongest currencies fundamentally, as designated by the FX macro scorecard model.
NOTE: The model had a 5-week hiatus due to glitch in data-sourcing that has now been resolved. Sorry for the disruption
NOTE: The end of year saw TRY removed from the model due to the deterioration in liquidity in the currency
NOTE: Click here for Wednesday’s FX macro fundamental scorecard
Long-term bullish/bearish biases of currencies:
RUB overall bias turned neutral from bullish
GBP overall bias turned neutral from bearish
USD and EUR overall biases turn bearish
JPY overall bias remains bearish
The fresh bearish dollar signal is interesting in context of what has happened on U.S. rates; it’s important to note that U.S. real yields remain some of the most negative in the world, given the evolution on inflation expectations
NOTE: The FX Macro Fundamental Scorecard presents long-term relative-value comparisons; trading dynamics are captured by the trend/momentum filter, which is based on momentum indicators against primary trading partners across four time spans
NOTE: Mark Cudmore is a macro strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice