Go short USD/JPY amid potential risk-off ahead of G20 - BAML

Dhwani Mehta FXStreet

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.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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