FXstreet.com (San Francisco) - According to Richard Franulovich of Westpac in New York, the next signal of Westpac’s modes is likely to be “a short USD basket trade,” a signal which “could be no more than a few weeks away.”
Mr. Franulovich explains: “Next week there are 5 data points going into our US data surprise index. If at least 4 data points beat consensus expectations our surprise index will rise above the upper +1 standard deviation threshold. That will put us on alert for a reversal and a formal model signal that all the good news on the US economy is behind us.”
Mr. Franulovich explains: “Next week there are 5 data points going into our US data surprise index. If at least 4 data points beat consensus expectations our surprise index will rise above the upper +1 standard deviation threshold. That will put us on alert for a reversal and a formal model signal that all the good news on the US economy is behind us.”
