Go short USD/JPY amid potential risk-off ahead of G20 - BAML
|The Research Team at Bank of America Merrill Lynch (BAML) recommends going long on the Yen against the Euro and the US dollar on potential risk-aversion ahead of G20 Summit later this month.
Key Quotes:
“Concerns of negatives to increase in markets ahead of the G20 (June 28/9).
Has the potential to see risk off sentiment.
Recommend selling USD/JPY.
Markets are complacent.
"We have a relatively optimistic view for the end game, but are concerned that things can get worse before getting better"
Risk is a comprehensive agreement at the G-20, but even if so, re-pricing of the Fed to limit risk-on market move, which would limit the downside for yen.”
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