J.P. Morgan is recalibrating its trade portfolio in response to evolving macroeconomic conditions, citing a moderation in U.S. economic exceptionalism, renewed tariff uncertainty, and lingering optimism over European reflation.
- tactically unwinding its residual long USD exposure
- initiating a short USD/JPY position in cash, paired with a short NZD/JPY basket
- says US economic data continues to align more closely with the rest of the world
- says visibility on US trade policy remains limited
- Short CAD/JPY remains a favored strategy to capture both themes, reflecting the direct tariff risks facing Canada and the Canadian dollar’s historical sensitivity to U.S. dollar dynamics
- neutralizing its EUR/USD short and rotating into an EUR/JPY put spread
- adjusting its short EUR/SEK exposure by shifting from a cash position to a put spread
This article was written by Eamonn Sheridan at www.forexlive.com.
