MUFG trade fo the week: Sell GBP/USD again

Currency investors should consider establishing GBP/USD short positions around current levels. The trade of the week from MUFG is to sell cable with a spot reference of 1.1100, a target of 1.0450 and a stop at 1.1450.

"We are adding a new short cable trade idea and maintaining a short NOK/CHF CHF The Swiss franc or Confoederatio Helvetica (CHF) is the official currency of Switzerland and Liechtenstein. The CHF is currently the seventh most-traded currency in the world and is treated as a significant reserve currency.Unlike other currencies in the world’s leading economies, the CHF was notable for its currency peg with the euro (EUR). Started in 2011, the Swiss National Bank (SNB) pegged the CHF to the EUR at a minimum exchange of 1.2.At the time, the peg was justified due to the strong C The Swiss franc or Confoederatio Helvetica (CHF) is the official currency of Switzerland and Liechtenstein. The CHF is currently the seventh most-traded currency in the world and is treated as a significant reserve currency.Unlike other currencies in the world’s leading economies, the CHF was notable for its currency peg with the euro (EUR). Started in 2011, the Swiss National Bank (SNB) pegged the CHF to the EUR at a minimum exchange of 1.2.At the time, the peg was justified due to the strong C Read this Term trade idea. We established [a cable short] trade last week and hit our profit target far quicker than we anticipated. We have since rebounded of course on the back of the intervention by the BOE to bring order to the Gilts market," they write.

"Confidence remains fragile and based on the signs of limited desire for any U-turn, we suspect GBP/USD will begin to decline once more."

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