We make adjustments to our trades portfolio amid
cross-currents from moderating US exceptionalism,
renewed tariff threats, and lingering optimism around
European reflation.
We tactically neutralize our residual USD length and
enter short USD/JPY in cash (basket with short NZD/
JPY) as US data continues to catch down towards
RoW while overall visibility on tariffs remains low.
Short CAD/JPY is still a preferred vehicle to play on
these dual themes given the direct tariff threat
on Canada & CAD’s traditional beta to USD; hold
vanilla put.
New trades: Neutralize EUR/USD short and rotate to
EUR/JPY put spread. Initiate long JPY vs USD &
NZD cash basket. Optionalize short EUR/SEK cash
exposure by rotating into new put spread. - J.P. Morgan FX Strategy
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